1- what factors influence the price of a product? course hero

What are the factors affecting pricing of product?

1. What factors influence the pricing decisions for a product such as Glitzz? Analyze these factors and comment on the range of prices that can be set for Glitzz. Norazah, M (2013) mentions that product price is the amount of money expected, required, or given in payment for a product. There are two types of product price.

What is the price of a product based on?

Apr 30, 2020 · The factors that influence the pricing decisions for Glitzz are the pricing objectives , costs , and demand . The pricing objectives will be needed to direct the role of the price in the market . Higher prices will need to be set if the objective is to have higher profit margin instead of higher market share .

What are the factors affecting the price of a commodity?

Oct 11, 2018 · The cost of production rises due to several factors, such as loss of fertility of land, high wage rates of labor, and increase in the prices of raw material, transport cost, and tax rate. iii. Natural Conditions: Implies that climatic conditions directly affect the supply of certain products.

How does a firm decide on the price of its products?

The law of supply. The law of supply states that an increase in the price of the good (for example, wooden chairs) leads to an increase in the quantity supplied while a decrease in the price leads to a decrease in the quantity supplied. This is illustrated as a …

What are the factors influencing price of a product?

10 Major Factors Affecting Pricing of Product (Explained)Objectives. ... Costs. ... Elasticity of Demand. ... Competition. ... Distribution Channels. ... Buying Pattern of the Consumer. ... Economic Environment. ... Market Position of the Company.More items...•Apr 7, 2020

What are 4 factors that influence the price of a product?

Four Major Market Factors That Affect PriceCosts and Expenses.Supply and Demand.Consumer Perceptions.Competition.

What factors influence price most?

1] Cost of the Product The most important factor affecting the price of a product is the product cost. The same principle also applies in case of services. The product cost will be inclusive of the cost of production, the distribution costs and the selling and promotion costs.

What two factors determine the price of a product?

1 AnswerFactors affecting the price of a product:(i) Product Cost.(ii) Utility and Demand.(iii) Extent of competition in the market.(iv) Government and Legal Regulations.(v) Pricing Objectives.(vi) Marketing Methods used.Detailed Answer:More items...•Jul 21, 2018

What are 3 factors considered when determining prices?

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 factors should be considered when determining the price of a product?

2. Consumers: The marketer should consider various consumer factors while fixing the prices. The consumer factors that must be considered includes the price sensitivity of the buyer, purchasing power, and so on. 3. Government control: Government rules and regulation must be considered while fixing the prices.

Why do marketers reduce prices?

At the time of recession, the consumer may have less money to spend, so the marketer may reduce the prices in order to influence the buying decision of the consumers.

What is the product life cycle?

Product life cycle: The stage at which the product is in its product life cycle also affects its price. For instance, during the introductory stage the firm may charge lower price to attract the custom­ers, and during the growth stage, a firm may increase the price. 5. Credit period offered:

What is the predetermined objective?

The predetermined objectives: While fixing the prices of the product, the marketer should con­sider the objectives of the firm. For instance, if the objective of a firm is to increase return on investment, then it may charge a higher price, and if the objective is to capture a large market share, then it may charge a lower price. 3.