The consumer judgement of the price of the traditional foods

Abstract

Price strategy is a peculiar aspect of the marketing model called Marketing Mix. Pricing related decisions usually constitute the hardest and most sensitive set of decisions that entrepreneurs have to make. The Hungarian consumers' high price sensitivity coupled with a high demand for low-cost products and services indicates the significance of pricing in Hungary. Pricing is crucial in raising interest and winning new customers. Prices might reflect product quality, brand strength and recognition, just like product differentiation or the image of a product or its producer. Consumers of traditional region-specific horticultural and agricultural products are willing to pay a higher price in appreciation of the high quality and special character of these products as this consumer segment tends to assign emotional functions to certain product features instead of solely focusing on the functionality and usefulness of the goods.