Price Challenges in a Context of Crisis

In the competitive environment, price is always perceived by stakeholders as a great challenge and even a source of conflict: customers complain that it is too high, competitors use it as a weapon of attack to gain competitive market share, vendors exercise a high pressure over it, relying on high bargaining power they have, all of which are an unavoidable reality of modern competition. Nobody can set prices effectively without first understanding cost, understanding cost is probably the most challenging aspect of pricing, particularly in a context of crisis. For a customer to buy a product its price must be at least tempting, if not convenient, customers hardly resisting sellers’ challenges, like "70% discounts”. "Sexy Prices" etc. Integrating aspects related to competitive reactions, the major task of management is to understand the conditions triggering a "price war" (a direct challenge).