Basically, the prices of products and services are determined by the interplay of demand and supply conditions.

Price can be affected by many factors. These factors can be grouped as external and internal factors that may be marketing objectives and pricing objectives, marketing mix strategy, costs, organizational considerations, nature of the market and demand and competition.

Pricing Decisions factors    are considered part of a company’s marketing strategy because it influences its relationship with customers.

Pricing decisions include to meet only  product costs.

Pricing decisions include purchasing power of customers.