The price variable refers to what the consumer must give up to purchase a product or service. While price is discussed in terms of the dollar amount exchanged for an item, the cost of a product to the consumer includes time, mental activity, and behavioral effort. The marketing manager is usually concerned with establishing a price level, developing pricing policies, and monitoring competitors’ and consumers’ reactions to prices in the marketplace. Afirm must consider a number of factors in determining the price it charges for its product or service, including costs, demand factors, competi tion, and perceived value. From an IMC perspective, the price must be consistent with the perceptions of the product, as well as the communications strategy. Higher prices, of course, will communicate a higher product quality, while lower prices reflect bargain or “value” perceptions .Aproduct positioned as highest quality but carrying a lower price than competitors will only confuse consumers. In other words, the price, the advertising, and the distribution channels must present one unified voice speaking to the product’s positioning.