The first step in estimating demand is to ________.
A) analyze competitors' cost
B) select a pricing method
C) understand what affects price sensitivity
D) calculate fixed costs
E) decipher the experience curve

Question

Quizplus · Accepted Answer

Understanding what affects price sensitivity is the first step in estimating demand. This involves analyzing consumer behavior, market conditions, and the perceived value of the product or service. Only after fully understanding these factors can a marketer accurately estimate demand and set prices appropriately. Analyzing competitors' cost, selecting a pricing method, calculating fixed costs, and deciphering the experience curve are all important steps in pricing and demand estimation, but they come after understanding price sensitivity.

The First Step in Estimating Demand Is to ________