Pricing, one of the four functions of marketing (along with product, place, and promotion), is a [Page 2727]dynamic process by which buyers and sellers determine what, and how many units of wealth should be exchanged for a needed product or service. Buyers and sellers have differing goals in this exchange process. Usually, buyers are interested in obtaining needed products and services at the lowest price, while sellers tend to concern themselves with maximizing their profits. Price affects both the supply of, and the demand for, a particular item. Generally, higher prices encourage sellers to produce more of an item but discourage buyers from purchasing large quantities of the item. Contrariwise, low prices tend to whet buyer demand for an item while discouraging sellers from producing. ...