CHAPTER ONE

1.1     INTRODUCTION

Communication has become one of the greatest tools in marketing  of goods.  This important services has to be appropriating proceed in order to attract customer patronage and increase protiability.

          According to Kotles (1996 P:46) price is the amount of money customers pay for the product or service and the time a place of exchange.

          Mumer (1994:10) in the quality review of marketing stated that price is the exchange value of a good services and the value of an item is what it can be exchange in the market place, every product and service has its price.  It is through price and payment that firms recover their cost of production and active their margin of profit.

          Price is the monetary expression of values. Value is created on utility, utility is an expression of usefulness, while usefulness is based on the potential for need and want, satisfaction value and utility are culturally based while needs and want cultural psychological, sociological and physiological based,  therefore price as an ultimate expression of needs  and want satisfying potential of an item of product or services which has cultural psychological economic  implication on market.

          Edoga and Ani (2000: 319) noted that price is often used to indicate value when it is paired with the perceived quality of product or service specifically, value can  be defined as the ration o perceived quality to price (value perceived quality/price).

          This relationship shows that for a given price as perceived quality increase, value increases.  Also, for a given price,  value, decreases when perceived quality decrease.  For some product, price itself influences that perception of quality ultimately value, to consumers, this include transport service.

          Pricing is an important and complete elastic of the marketing mix and generate the highest level of external interference.

          It is a major determinant with volume of goods and service available  for the consumer in any economy.  Therefor, forms especially those on profit business has to chose with the control.  The environmental variable, both external and internal pricing policies and techniques which are available to achieve its organizational objective.

          The importance of price in communications industry cannot be one emphasized.  If communication organization wants to maximize its net profit the right price must be selected for its services price in a services may either be to higher too how to be good.  When the price changed are two high the size of the market for that particular product may be unnecessary restricted and if the right price where used.  The size of net profit is directed to the effectiveness of price because price usually cause change in market demand for a given product and in turn its revenue and net profit. 

          Monree (1992: 210) noted that the consumer perception of product quality vary directly with the price, the higher the price, the better the quantity is perceived to be.

          In the world of Ichie (1993: 25) without price there can be no marketing, product may be marched with market but only when buyers and sellers agree on price, ownership transfer actually occur.  Either a buyers or a seller may propose a price but it is not effective until price is accepted by the owner.

          In the view of the compose nature of price and important to customers patronage decision the researcher in the study critically examine the effective pricing strategies for introducing a new product in the market with particular interest on Global Communication  GSM operation in Enugu.

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