Research Journal of Finance and Accounting www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.8, No.6, 2017 42 Power Behind Pricing Practices Based on Torajanese Culture Natalia Paranoan * Erna Pasanda Economic Department, Paulus Christian University of Indonesia, Makassar 90243, Indonesia Abstract The purpose of this research is to reveal power behind pricing practices of buffalo as an animal sacrifice in Torajanese tradition. The buffalo’s selling price in Toraja that reach hundreds of millions ruphias is an appealing phenomenon to study because buffalo in Toraja is appreciated as special animal with many cultural symbolic meanings that give affects to its price. Method of this research is using qualitative research methods with ethnography study towards in depth exploration and observation in regards to the concept of price determination based on Torajanese culture, South Sulawesi, Indonesia. Result of research that power behind pricing practice caused the price of buffalo in Toraja is very high. There are two powers that affect the pricing practices of buffalo such as the religion of the ancestor named Aluk Todolo and the power of the noble family. In fact the price is not merely based on cost, profit mark up and market prices, so that the Government should prepare instrument to cover this phenomenon. Keywords: Power, pricing practice, buffalo, Torajanese culture. 1. Introduction Social interaction is a mechanism of reproductive dominance relationships between individuals and groups. A mechanism that establishes what is called culture. Normally, prevailing culture is the culture of the ruling. An effort to always distinguish themselves from what is done by most people is one strategy to maintain the dominance and a means to accumulate other types of capital. So ideology, talent and cultural taste have been made as myth that hides their interests that are in a position to dominate. The environment influence on the accounting practices of pricing. Various studies reveal this case, such as, Odongo, et al (2012), was examine the impact and the extent to which global Cultural differences affects a company’s pricing decisions. Juan’s research (2011), which proved empirically that price perception influenced by culture/ environment significantly. Maxwell (2001) examined the effect of price and brand to the consumption behavior of American people and Indian people and the results stated that consumption behavior of society will be different in different cultures. Ackerman and Tellis’s research (2001) also supports Maxwell’s research (2001), in which they examined the behavior of consumer spending and the price of products in the two groups; the American culture and Chinese cultures. They found that the differences in the behavior of these two groups is very sharp, the Chinese people more careful in buying products and spend a lot of time for shopping. In the company concept, pricing is one of the most important and complex decisions faced by managers. Pricing product give direct impact on the company's profit to survive. The analysts takes 7-8 years to learn the price of goods/services in the market and test the foundation of pricing (Easton, 2013). Although the way the pricing is the same used by every company that is based on costs, competition, demand, supply, and profit but the optimal combination of these factors are different according to the nature of the product, market, and company goals. 1.1. Price Price is the amount of money expected, required, or given in payment for something. Price is the value that is put to a product or service, or in other words price is a value that expressed in other monetary form for exchange (transaction). Many factors involved in pricing and the definition depends on the problems of accurate determine on what is sold. Hansen and Mowen (2001:633) states that the selling price is the monetary amount charged by a business unit to the buyer or customer on goods or services sold or delivered. While Mulyadi (2001:78) argues that the selling price should cover the full cost and profit. So basically the selling price is equal to the production cost plus profit mark-up. Definition of price is different with value. Value is the person’s perception on an object that is converted into a convertible currency or the equivalent of goods. This value is valid for a certain time and will change over time. Hence the value of a person's perception (the benefits or the value of an item/object), then the value can be different from one person to another, causing a difference value which ultimately affects the price of an item/object. In other words it can be said that in addition to costs and profits of the main factors in pricing product, there is a value attached to an item that can affect a person's perspective on the goods and relate to how many prices are determine.