GK
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fixed Cost
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Average Cost
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Variable Cost
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All of the above
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Detailed explanation-1: -Pricing depends on various factors like manufacturing cost, raw material cost, profit margin etc. Pricing objective is to price the product such that maximum profit can be extracted from it. Pricing of a product is influenced by various factors as price involves many variables.
Detailed explanation-2: -The cost data used in pricing decisions can help to determine the quantities of the units produced and the costs incurred when producing those units. Costs also play a role when deriving market conditions and market elasticity.
Detailed explanation-3: -The most important factor is the cost of production. In deciding to market a product, a firm may try to decide what prices are realistic, considering current demand and competition in the market.
Detailed explanation-4: -Pricing decisions are the choices businesses make when setting prices for their products or services.