Service industries are adopting many of the same pricing tactics as goods-producing firms. Those services that aren't important to customers are cut. With both goods and services, the idea is to give the consumer value. Ultimately, price is determined by supply and demand in the marketplace. Different consumers may be willing to pay different prices.
Marketers often compete on product attributes other than price.
Many smaller organizations promote the services that accompany basic products rather than price in order to compete with bigger firms. Marketers emphasize non-price differences because prices are so easy to match.