This article will consider both points of view, as well as discussing information pricing in its wider social context. Pricing plays a central role in economics. It balances demand and supply, provides an incentive for new players or products, and distributes income between buyers and sellers.
Pricing has a direct impact on company profit, and on all other elements of the marketing mix.
However, it is one of the most overlooked and poorly understood areas of marketing. From an organisation's perspective, price and sales volume of its products are the single most important decisions in marketing. Ultimately, the higher the price can be raised, assuming stable unit costs and sales volume, the higher the profit. Price is the value placed on what is exchanged, and the value at which a seller is prepared to exchange, and customers participate in that exchange. Something of value is exchanged for satisfaction or utility.