Price-setting Practices for New Product Introductions: Evidence from Bulgaria

Abstract

This paper presents the importance of the price-setting practices in the Bulgarian companies. According to the published research, the pricing, including that for the new products at their introduction into the market, is one of the most complex decisions in the company. When setting the price for a new product, the companies apply three price-setting practices: value-based pricing, competition- based pricing, and cost-based pricing. Results of empirical study amongst Bul- garian companies reveal that the most important price-setting factor for the tan- gible products are the prices of competitors’ products, and for the services – the fit between price and product parameters.