Marketing Management, 16th Edition

Overcoming Price Pressures

Despite moves toward strategic sourcing, partnering, and participation in cross-functional teams, buyers still spend a large chunk of their time haggling with suppliers on price. The number of price-oriented buyers can vary by country, depending on customer preferences for different service configurations and the characteristics of the customer’s organization.31

Marketers can counter requests for a lower price in a number of ways, including the use of framing, as noted previously. They may also be able to show that the total cost of ownership—that is, the life-cycle cost of using their product—is lower than that for competitors’ products. They can cite the value of the services the buyer now receives, especially if ...