BUISENESS MANAGEMENT
MARKETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Pricing decisions dictate how much to charge for goods and service in order to make a profit
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Pricing decisions are based on costs and on what competitors charge for the same product or service
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Must also determine how much customers are willing to pay
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All of above
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Detailed explanation-1: -Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business’s marketing plan.
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: -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.
Detailed explanation-4: -Thus, Pricing strategies includes predatory pricing, price fixing and deceptive pricing.