Pricing is an integral component of a firm’s marketing strategy. Setting a price too high may drive away potential customers. Setting a price too low may raise doubts among potential customers as to the quality of the good or service.
The trend in consumer prices (inflation) is an essential guide to businesses in price setting for their goods and services. Prices are the key to revenue and profits and they also influence employee demands for pay increases.
Price data for the standard market basket of goods and services purchased by urban