Price is the formal ratio that indicates the quantity of money, goods or services needed to acquire a given quantity of goods or services – the amount a customer must pay to acquire a product. [1]

Along with product, place, and promotion, price is one of the 4Ps of the marketing mix. [2]

Price sensitivity refers to the degree to which demand for a given product is affected by a change in its price. [2]

Price threshold refers to the lowest or highest price that customers are willing to pay for a particular good or service. [1]

See Also

Price discrimination
Price premium
Price per statistical unit


  1. American Marketing Association, AMA Dictionary.
  2. Govoni, N.A. Dictionary of Marketing Communications, Sage Publications. (2004)

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