It Management

PRICE AND VALUE AGREEMENT​​1

Tenisha Mason

FIS/200 History of Money Matter Medium and Measure

Instructor: Chalmer Swanson III

Price and Value Agreement

October 18th, 2013

Price and value agreement is simply the value of a product and service that is equal to the price place on that particular item. The consumer would have to determining if the value and the worth of the product or service would be the same for everyone who would be interested on purchasing the item; this is something that the consumer may or may not struggle with and most individuals may not understand this concept. For them to fully understand the concept they would first understand the difference between the price and the value of the product and services.

Does anyone go to the grocery store and purchased products because it was on sale, half-off, buy one and get one free or even shop with coupons? I know may have many individuals who are guilty of this because I know I am. Have you thought about the value of the product that you are purchasing? Seeing that the product was either free or on sale does it mean that there was not value of it either? This is why it is important of knowing the difference of price and value of a product or services.

The consumers would have to understand that the value of a product or service does not determine price of that product or service; the price is normally determine by the demand and supply of the particular product or services that the company wants to market and once there is a high demand for the product or services then it would be a low supply of them product being available. When it comes to demand and supply, once the supply is low for the...