What are the factors affecting international price determination?
Main factors affecting price determination of product are: 1. Product Cost 2. The Utility and Demand 3. Extent of Competition in the Market 4.
What are the factors affecting the pricing decisions?
9 Factors Influencing Pricing Decisions of a Company
- Price-quality relationship:
- Product line pricing:
- Explicability:
- Competition:
- Negotiating margins:
- Effect on distributors and retailers:
- Political factors:
- Earning very high profits:
What are the key factors affecting price Give an example of how each factor affects price?
Three important factors are whether the buyers perceive the product offers value, how many buyers there are, and how sensitive they are to changes in price.
What are the factors affecting determination of the price of a product or service explain any four?
Utility& Demand- The product cost set the lower limit of price, the utility provided by the product &intensity of demand of product sets the highest price of the product. 3. Extent of competition in the market- when firm does not face any competition it has complete freedom in fixing up the price.
What factors should be considered in pricing?
Five factors to consider when pricing products or services
- Costs. First and foremost you need to be financially informed.
- Customers. Know what your customers want from your products and services.
- Positioning. Once you understand your customer, you need to look at your positioning.
- Competitors.
- Profit.
Which of the following is price determination method?
a) Going rate pricing If price of products or services is determined on the basis of market price, it is called going rate. In this method, price is determined on the basis of competitors’ price (equal to the price of the products of the competing companies).