How Important is Price?


price, customer value, perception, consumer decision-making, competitors

Review the activity below or download the PDF student worksheet

Student worksheet: How Important is Price

Student Discussion Activity

In this exercise, you are presented with eight product alternatives, as you would find in a supermarket environment. As you will see, price is simply one aspect of the consumer’s perception of value.

Review the following list of pasta sauces, which one would you buy?   





The leading brand name – heavily advertising on TV for 20 years – well known and recognized



Imported from Italy – authentic Italian pasta sauce



A fairly well known brand, normally retails at $3.80 – on special for one week only



A well-known brand that gives ALL profits to charity



Locally-made pasta sauce – ‘help support the local community’



An unknown brand



An unknown brand with an unusual flavor of sauce – not offered by the other brands



The supermarket (private label) brand


Student Discussion Questions

  1. Which one pasta sauce would you purchase? Why
  2. How does your selection compare to your fellow students?
  3. Therefore, how important was the role of price in the overall purchase decision?
  4. Considering the popular choices, what aspects of the product’s positioning appears to be the most effective in generating sales?

Related Activities

Value Pricing – A Tough Decision

What is Customer Value?

Price Mix MCQ Revision VIDEO

Different Pricing Terms

Average Cost Curves Game

External Information

The Important Differences Between Price And Value

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