Price

The price of my product is around $4.99 for a 500 pack of Q-Tip brand cotton swabs. This is around two dollars more expensive than a generic version of the same product. “If consumers perceive that the company’s product or service provides greater value, the company can charge a higher price” (Armstrong and Kotler 280). People are aware that Q-Tip brand will cost more, and they are willing to pay it because it is of a higher quality. Consumers will pay premium prices for the Q-Tip brand because the brand name Q-Tip has become synonymous with the word cotton swab; this is called dominant mind share and is the ultimate goal of any company when choosing a brand name. “Many firms try to build a brand name that will eventually become identified with the product category” (Armstrong and Kotler 231). Q-Tips must be sold at a price that is higher than their competitors because of the brands perceived value. If Q-Tips suddenly started to cost less than or even equal to their generic competitors prices, consumers would be utterly confused and might start to think that Q-Tips aren’t all that great after all. Keeping the price of Q-Tips affordable but not so low as to lose its perceived value is what my goal is in terms of pricing.