ENTREPRENEURIAL MARKETING
MARKETING MIX
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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method is difficult to apply
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loss of profit
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business can lose sales if selling point is higher than competitors prices
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wont be able to expand market
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Detailed explanation-1: -Since this pricing strategy doesn’t consider competitor prices, there’s a risk that your selling price is too high. This could result in a loss of sales if consumers choose to do business with a lower-priced competitor.
Detailed explanation-2: -Cost-plus pricing doesn’t take consumers into account. Therefore, any pricing strategy that ignores customer value is detrimental to the business’s profitability. This creates a vacuum that drains away all of the profit. In summary, customers don’t care about how much something costs you to make.
Detailed explanation-3: -Variable cost-plus pricing is not suitable for a company that has significant fixed costs or fixed costs that increase if more units are produced; any markup on the variable costs on top of the fixed costs per unit might result in an unsustainable price for the product.