The first step in the price setting process that produces a starting point from which further price changes may be made before the customer pays the final price and at the retail level may also serve as the manufacturer’s suggest retail price (MSRP).
Changes to a company’s initial product pricing that are consistently part of the marketer’s pricing program and not adjustments that only arise as part of special promotions and include Quantity Discounts, Trade Allowances, Geographic Pricing and Special Segment Discounts.
A market pricing method for setting a product’s initial price that is used when there are multiple products within a marketer’s product line and customers’ perception of difference is affected by the separation in prices for each item (e.g., low price, mid-price and premium price).
