What is Arms Length Price in Marketing?

Learn Arms Length Price definition in marketing with explanation to study “What is Arms Length Price”. Study arms length price explanation with marketing terms to review marketing course for online MBA programs.

Arms Length Price Definition

  • Price charged by other competitors for the same or a similar product.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong



Arms Length Price Explanation

It is a set of amount allocated by the organization for their products and services, whereas, at the same time the prevailing competitors in the market also charged the same prices to their product for the customers. In this process, buyer and seller of the product works independently, where they are not into any relationship with each other. It helps them to make business transaction without any pressure or interference of third party.

Keep Learning Marketing Explanations

What is Value Delivery Network?

Worth conveyance system is a piece of inventory network of an organization and incorporates all its immediate members associated with ...

What is Brand Awareness?

In order to create more publicity for the brand, one should follow certain strategies for a successful brand awareness campaign, ...

What is Elimination-by-Aspects Heuristic?

According to elimination by aspect method, it is a decision making technique in which customers have multiple options in order ...

What is E-Business?

E- Business is also known as Electric business, is a business via internet. It include buying and selling of goods ...

What is Uniform-Delivered Pricing?

It is sort of estimating in which purchaser would most likely purchase at same value independent of its area. Here ...

What are Branded Variants?

It is defined as a brand which offers diversified versions of the same product, it is distinguished in relation with ...