Asked by
Brian Lewellen
on Dec 15, 2024Verified
Which of these statements regarding pricing constraints is most accurate?
A) Generally, the greater the demand for a product, the higher the price that can be set.
B) At the corporate level, when setting pricing constraints, a firm must disregard current conditions in the marketplace because they are too temporal for long-term planning.
C) Pricing constraints must always be set, but they are rarely enforced.
D) It is possible to create pricing constraints with the greatest range possible in order to anticipate any and all changes in the marketing environment.
E) Even if a firm is trying to satisfy its obligations to its customers and society in general, it should ignore setting pricing constraints.
Pricing Constraints
Limitations that affect how a company can set prices for its products or services, which may include costs, competition, demand, and legal issues.
Demand
The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.
Marketplace Conditions
The various factors and conditions that affect the dynamics of buyers and sellers in a particular market, including competition, customer demand, and regulatory environment.
- Gain an understanding of the role of external variables, including competitor pricing and market demand, in shaping a firm's pricing policies.
- Acknowledge the barriers to setting prices, which encompass production costs, demand within the market, and the type of competitive environment.
Verified Answer
NK
Learning Objectives
- Gain an understanding of the role of external variables, including competitor pricing and market demand, in shaping a firm's pricing policies.
- Acknowledge the barriers to setting prices, which encompass production costs, demand within the market, and the type of competitive environment.