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In a free market system, transactions between buyers and sellers are based on relative supply and demand. If there is a larger supply of the product than demand for it, the price of the product will likely decrease because the seller wants to sell its products within a predetermined deadline. Alternatively, if the demand is higher than the supply, the price of the product will likely increase because consumers would be willing to pay a higher price because of the scarcity of the product.
However, pricing can play a greater role than just reacting to the economics of supply and demand. The psychology of pricing can also affect a consumer's perception of the brand and can indicate certain attributes it possesses. A brand's price point can help shape its positioning in the marketplace in attracting its target audience and compelling them to provide value back to the company via their purchase of it.
In this week's discussion, you will identify a brand and describe a pricing tactic used to signal particular attributes about it. Your position (paragraph) should explain how you think pricing is important to the value proposition of the brand. Please use terms and concepts from the readings to better frame your arguments.
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