MNC: Right price vs. fair price. Take a position and explain it.

You are a executive for a large multi-national corporation, meeting with general managers.

Prices are often set to satisfy demand or to reflect the premium that consumers are willing to pay for a product or service. Some critics shudder, however, at the thought of $2 bottles of water, $150 running shoes, and $500 concert tickets.

TAKE A POSITION:

Prices should reflect the value that consumers are willing to pay.

vs.

Prices should primarily just reflect the cost involved in making a product or service.

Explain your position.

Solution Summary

The 443 word solution offers reasons for cost based pricing.