Competition can affect pricing when the target market is price conscious because competitors pricing may determine your strategy.

PRICING STRATEGIES

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Competition can affect pricing when the target market is price conscious because competitors’ pricing may determine your strategy.

A	True
B	False
C	Either A or B
D	None of the above

Explanation:

Detailed explanation-1: -in the target market also affects the pricing strategy. If the economic condition of the target market is good, there is great opportunity for the organisation to generate sales via different pricing methods and strategies – Market penetration, market skimming, perceived value pricing, demand differential pricing, etc.

Detailed explanation-2: -Competition: While fixing the price of the product, the firm needs to study the degree of competition in the market. If there is high competition, the prices may be kept low to effectively face the competition, and if competition is low, the prices may be kept high.

Detailed explanation-3: -The main determinants that affect the price are: Product Cost. The Utility and Demand. The extent of Competition in the market.

There is 1 question to complete.

ENTREPRENEURSHIP

ENTREPRENEURIAL MARKETING

PRICING STRATEGIES