Price Point is defined as the price at which demand for a particular product should be relatively high. There are three main reasons regarding the existence of Price Point as per many economists and they are stated as follows:
Price Point is a technique or issue that marketers do not want to lose their grip upon. It is preferred for marketers to go through details of some textbooks that are based upon the topic of Price Point as follows:
Example 1: An example of Price Point application can be that of Real Estate Prices. The prices of Real Estate are always believed to retain its Price Point at all times. The era may be of a recession or economic upswing, but Real Estate Prices do not deteriorate as per their Price Point Value. The strong reason behind their Price Point is their being non-movable assets.
Example 2: Another example of Price Point Application can be in the case of essential food commodities like Milk or vegetables. These are such products that will always remain in demand due to their daily usage in life so their Price Point will always remain maintained.
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