Please follow this link to an excellent article by MacWorld on the variety of different word processing options available on the Mac. If you buy a new OSX/IOS device then Pages is installed for free - however it is not the product it once was, withnt being stripped of some functionality that users of other software will find baffling (no Mail Merge is a common gripe I hear).
We are assured that there are improvements in the pipeline and I believe this. They've done something that I think is brave and necessary in stripping it right back to it's bare bones and gradually improving it. In eighteen months I'm sure it's going to be amazing but in the meantime, if it isn't good enough for you, check these other options