Is Price Everything or Just One Factor?

Is Price Everything or Just One Factor?

Is Price Everything or Just One Factor?

The most important factor affecting the price of a product is the product cost. The same principle also applies in the case of services. The product cost will be inclusive of production, distribution costs, and selling and promotion costs.

Nothing is simpler than the price. Only number, amount, point of equilibrium between supply and demand. But in recent years, understanding prices and their evolution has become a real headache.

Price; is one of the things everyone faces every day: the cost of products, services, living. That’s why it is an essential element of our society and economy. Prices surround us, and we are constrained, but they are needed to maintain trade and market balance.

Price remains a key element in enabling a market economy system function. It has to do with everything that has to can be exchanged. Prices seem the consumer is very rarely a negotiator. Prices have a life clean, independent of their approved transactions. In all cases, we can compare prices, reflect them, and set a price for someone.

When you are faced with advertising, a new product, clothing, furniture, you first need to look at its price. For the consumer, the price reflects the product’s image, which is why it is so important.  Price is first and foremost an economic concept. It may refer to the amount of money owed to the buyer of the goods or the recipient of the services to the seller or service provider. Okay, of course, there are different types of prices.

The concept of consumer poses difficulties. Its definition is variable, depending on whether we consider ourselves at the national or European level.

Different approaches have been taken. There is no definition in French law.

The case law and doctrine apply to this definition. The Paris court has several versions submitted in 1998 July 3 In the judgment of the Paris Court of Appeal 1 bringing that consumer “means a natural or legal person who is inexperienced in the field in which it concludes contracts, operates to meet its own needs.

  1. Paris Court of Appeal March 7, 1998, A modern sanitation and cleaning company. BOCCRF of July 16, 1998, Decision 97-PB-02 BOCCRF of May 27, 1997, August 30, 1997. Personally, and use the purchased products or services only for this purpose. “Location Regulations and directives govern the definition. Ring 1988 07 19 2 claims that the end-user uses or uses the products services to meet their needs and dependents professional activities, resell them, restructure them.  

    Under the Community Directive of 05.04.1993, the user is “everything a natural person who acts as an outside his professional field at the time of the sale or service transaction. “

    Latin consumption is “consumers,” which means: to achieve, to complete. Indeed, consumption is the last stage of the economic process. It consists of acquiring goods or services not intended for use by a natural person professional to meet everyday life needs. A professional is a natural or legal person who acts in normal and organized activities, production, distribution, and services.

    The competition, we think, is in between professionals. The proposal is characterized by economic competition several different and competing firms, products, or services that tend to meet equivalent needs on a reciprocal basis earn or lose customer favor.

    The whole point of this topic is to emphasize the importance of price, today, as yesterday, in our society, which has become a consumer society.

    Price is used to express the value of a good or service. Also interesting to present the role of price between companies, especially in determining it. It is necessary to establish competition. The latter is important for consumers because it offers many choices, and these different choices allow competition. The price allows for exchanges and transactions are carried out. The peculiarity of the award is that it is enshrined in both consumer and competition law. Consumer laws are a set of rules for business-to-customer relationships.

  2. 1988 July 19 Circular implementing the 1987 March 12 The decree’s provisions on price information. JORF 1988-08-04, p. 9951

  3. 1993 April 5 Council Directive 93/13 / EEC on unfair contract terms with consumers. They are aimed at protecting individual customers who are consumers. Right competition is also understood as a set of rules that apply to companies and customers in their market activities and aimed at the regulation competition in which they participate to ensure competition satisfactory, without excessive. From an economic perspective, competition is emerging as a mechanism to shape prices in a particular market, a simple supply and demand game arising from vendors isolated from each other. When faced with a customer, a company is not alone, and it is in a competitive situation. The competition is a healthy, normal, and beneficial situation. Companies since then long ago realized the advantage of rushing rather than fighting. That is why the competition’s challenge is to ensure that consumers are competition law provisions directly related to users.

    After all, this subject’s study reveals the relationship between consumer law and competition law. These two things are similar, and it is impossible to conduct a consumer law study without another. In this work, price is first and foremost establishes a connection between 2 domains. The user allows competition and price competition to the benefit of the consumer.

    Prices are known in French history, several variants economic, legislative, political, or even in times of crisis or war. Initially, prices did not exist. Trading took place only in exchange. Then prices prevailing through the currency arose in trade.

    The principle of price freedom has been adopted in France.

    Adjustable prices remain exceptions. For a long time, the price was the first consideration as expenses incurred by the person. The user recognizes it’s, therefore, an informational role that is made later. Price is a certain variable the marketing mix, so it is used with extreme caution. The goal was play prices. Competitive firm or it increases price (but with declining market shares), or it reduces them (but decreases profitability). It is dangerous. Price is a powerful stimulant for sales. It has a dynamic and fast look. It’s unexpected and surprising. Historically, prices have been standardized, little sophisticated, and competition has been expressed, especially in prices. Price is an important source of income for a company and a source of life for the product in the consumer’s eyes.

    In 2000 Lambey stated that the price is considered the amount of his currency to receive the desired item. Simon 1989 Provided more definition narrow: “the price of a product or service is the number of monetary units that the consumer must pay for the receipt of a unit of this product.”

    Price has essentially technical value. User Code makes the price the basic quality of the product offered for sale, and it sets price indication in more or less important detail.

    On the technical side economic, the price would be a numerical value that would allow at some point provide a quantitative response that reflects at the same time the balance between supply and demand on the stairs.

    The price is calculated, fixed, and even monitored.

    Price also has consequences socially and financially for both consumers and businesses.

    Psychologically, this affects consumers and professionals, pushing them to think according to their level.

    The price is indicated to the consumer by coins and the cashier’s tickets to get the desired item. The price must be clear, fast, and understandable information. Both are considered basic information in economic theory, a rational decision factor, and a source of not very rational behavior often included in psychological prices. These “magical” prizes are a U.S. study of about 30,878 current articles was conducted that 64% of prices end in 9 and 19% in 5. on the focused the main study’s of this subject on economics and marketing and law.

    Consumer price behavior is currently being discussed.

    All distributors, manufacturers, and consumers. All distributors, manufacturers, and users. The importance of the price factor in the consumer’s purchasing decision is usually acquired. General price analysis according to the Law of the Republic of Lithuania consumption and competition have been taken. Who will draft the economic explanation of the price in a clear, precise, and easy-to-understand manner? They will not consider major, More complex theoretical changes in detail. Results

DGCCRF control mission

the result of the research is sometimes contradictory. Users will always look at the price, even if they say otherwise. In the history of commerce, every time a retailer makes pricing mistakes, consumers do so. Every time Carrefour thinks price doesn’t matter, loses market share, and vice versa, when it gives prices, it wins. Research purchasing behavior is the foundation of marketing, a new, central discipline born in 2005 in the 1960s. Recent contributions from neuroscience have made it possible to use the image brain to understand the individual through his reactions better, thus better predicting his future choice behavior. From 4 solution areas marketing, price is the most problematic and most controversial. Marshal was the first to develop a specific theory of buyer behavior under which the decision purchasing is the result of rational and conscious calculations.

Several researchers have been interested in perceived increased cost. However, each defines it independently of the others. Behavioral research consumers have always attached great importance to the expected reference price, which directs consumers to product choice. Monroe developed the first global definition of this concept in 1979: “The reference price is the price used by the buyer as a benchmark to estimate the price of the product, or service offered’. This price corresponds to the price in the buyer’s memory or a price alternative product.

The consumer is cynical, opportunist. He spends what he thinks is good for him, or does all he can to get as many things as possible for a minimum cost.

From an economic point of view, the consumer’s choice depends on several elements: income, price, type of good, presence or absence of substitute goods.

What is a good price, a price, a normal price, a fair price?

The study of price on consumer behavior is complex and not very inclined to be reduced to a simple relationship between a price change and demand response.

The phenomenology of price, which considers all the experiences of consumption during which the question of price becomes perceptible, takes an interest in price benchmarks, variations, and paradoxes.

-Fedrick Gold – Staff Writer