BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Pricing decisions dictate how much to charge for goods and service in order to make a profit
|
|
|
Pricing decisions are based on costs and on what competitors charge for the same product or service
|
|
|
Must also determine how much customers are willing to pay
|
|
|
All of above
|
Detailed explanation-1: -Pricing is a process of fixing the value that a manufacturer will receive in the exchange of services and goods. Pricing method is exercised to adjust the cost of the producer’s offerings suitable to both the manufacturer and the customer.
Detailed explanation-2: -Pricing above the competition: Offering products or services priced superior to your competitors. It is usually done when you feel the products or services you offer are a notch above your competitors. Pricing on the same level: Also known as price matching. You price your product similar to that of your competitors.
Detailed explanation-3: -The main determinants that affect the price are: Product Cost. The Utility and Demand. The extent of Competition in the market.
Detailed explanation-4: -Importance of Pricing – Helps in Determining Return, Determines Demand, Sales Volume and Market Share, Countering Competition, Builds Product Image and A Tool of Sales Promotion. Pricing is an important decision making aspect after the product is manufactured.