Pricing is one of the most vital and highly demanded component within the theory of marketing mix. It helps consumers to have an image of the standards the firm has to offer through their products, creating firms to have an exceptional reputation in the market. The firm's decision on the price of the product and the pricing strategy impacts the consumer's decision on whether or not to purchase the product. When firms are deciding to consider applying any type of pricing strategy they must be aware of the following reasons in order to make an appropriate choice which will benefit their business.