​In most markets, low-priced brands sell at higher volumes than high-priced brands, and a brand will sell more if it drops its price and sell less if it raises it. The brand’s price relative to its direct competitors is usually the most important consideration, so marketers should keep a close eye on pricing and make adjustments to keep the difference within an acceptable range. The range itself depends on the appeal of the brand compared to these competitors.

Check out 'The Smart Marketing Book' for further details.