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The customer

Different customers attribute different values to the same goods and service. From the manager’s viewpoint, price should be compatible with the customer’s perception of value. This is influenced by a myriad of factors including, income, education, culture and location.

For example, an expensive imported cheese to one person may be a luxury worth spending the money on, whereas that same cheese may seem excessive to another.

Therefore, setting price with a customer orientation is consistent with maintaining business direction. This is because, your price representas the views of your target market; the group of people to which your firm’s services or goods are directed to.

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