The pricing mix for the retailers is made up of three main elements that include efficiency, competition and the image of the retailer (Samli, 1998, p7). The pricing of the combination of goods and services provided by the retailer to its customers is dependent on the efficiency of the retailer according to which the retailing company with operates the level of competition in the market. Additionally, the pricing is also dependent on the image that the retailer has developed for itself in the market and the industry.
The pricing mix consists of price level, price lines, markdowns, mark-ups, price perceived quality, efficiency, warehousing, handing goods, computerized controls and store image. (Samli, 1998, p16) The retailers use the pricing as a tool for combating the competitors and create and sell an image for itself e.g. premium pricing for a luxury retail brand.