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In the above statement, we see the main phrase is buying decision. Therefore, we must first analyze
how the buying decision is made, what is the process behind it. Then we should relate it to the two main
opposing term of this discussion ʹ consumer͛s perceived price and marketer͛s stated price. Only then
we shall be able to analyze the whole statement.

So, first let͛s focus on the term Buying Decision. As can be stated easily from a mere glace at the words,
buying decision is a decision making process, i.e it is the cognitive process of selecting a product from
among multiple alternatives. From marketing point of view, buying decision is the decision making
processes undertaken by consumers in regard to a potential market transaction before, during, and
after the purchase of a product or service.

So, how decisions are made? Decision making is said to be a psychological construct. This means that
although we can never "see" a decision, we can infer from observable behavior that a decision has been
made. Therefore we conclude that a psychological event that we call "decision making" has occurred. It
is a construction that imputes commitment to action. That is, based on observable actions, we assume
that people have made a commitment to effect the action.

Now, let͛s have a look on how buying decisions are made. While making a buying decision, the
consumer passes through five stages: problem recognition, information search, evaluation of
alternatives, purchase decision, and post purchase behavior. Clearly, the buying process starts long
before the actual purchase and has consequences long afterward. This model implies that customers
pass through all stages in every purchase. However, in more routine purchases, customers often skip or
reverse some of the stages.

For our discussion, the most important part of the buyer decision making process is the evaluation of
alternatives and purchase decision. While evaluating, consumer͛s prime concern can be expressed by
the term ͞price value͟. Good buying decisions are based on price and value. Moreover, it is not the case
that value and price always increase (or decrease) in equal amounts. In other words, because one
product is three times more expensive than another doesn't automatically mean that it has three times
the value! Good buying decisions are those where the buyer obtains as much value as possible for the
least price.

Any product can (and should) be measured by its price and its value. Often times, that's not easy for
value is frequently a uniquely personal assessment. In countless instances, buying decisions are made as
much on the value of a product as on its price. Consumers don͛t generally pay high prices for products of
little value. Similarly, consumers don't generally pass up buying something of high value when the price
is low.

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On the other hand, marketers should try to get as high as possible price for maximum profitability. But
as long term business is also a prime concern for a marketer, and as more price than the value would
not able to make the product last long, marketer should rate the product in an alignment with its value,
and that value would be from consumer͛s point of view. Therefore, the marketer should set a price that
is very close to the maximum that customers are prepared to pay. This is known as ͞efficient price͟.

So, from the above discussion we see that the marketer͛s stated price is actually the price perceived by
the consumer, or something close to it. Otherwise the product would fail in the long run to retain the
market. Thus we can conclude that the statement in discussion is exact in essence and accurate in
saying.