Price

"The amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service" (Kotler& Armstrong, 275) I have chosen to price the Thai Chili crisps at $1.25 for a single 1-ounce bag and $3.50 for an 11-ounce bag.  By purchasing the large 11-ounce bag, consumers would be saving $10.25 as opposed to buying 11 1-ounce bags for $13.75.  I have made both bags a reasonable price while still encouraging the consumers to purchase the larger bag because of it's value.  "Setting prices based on competitors’ strategies, prices, costs, and market offerings"(Kotler & Armstrong, 275) The prices are competitive because they are priced within the same bracket as other brands and determined by the current economic status.  "In setting prices, the company must also consider competitors’ prices. No matter what price it charges—high, low, or in between—the company must be certain to give customers superior value for that price" (Kolter & Armstrong, 275).  Based on the economy, the price of my product will be on the same pricing plane as the rest of the products in its category.  It will not be too expensive that consumers will not purchase it, nor will it be too cheap that no profit will be made. "Economic conditions can have a strong impact on the firm’s pricing strategies. Economic factors such as a boom or recession, inflation, and interest rates affect pricing decisions because they affect consumer spending, consumer perceptions of the product’s price and value, and the company’s costs of producing and selling a product."(Kotler & Armstrong, 284).