After determining its pricing objectives, what is the next logical step a firm should take in setting its pricing policy?
A) It should analyze its competitors' costs, prices, and offers.
B) It should select its pricing method.
C) It should determine the demand for its product.
D) It should select its final price.
E) It should estimate the cost of its product.

Question

Quizplus · Accepted Answer

After determining pricing objectives, the next logical step for a firm is to determine the demand for its product. This helps the firm understand the market, its target customers and how they will react to different price points. This information is necessary for selecting the appropriate pricing method and arriving at the final price. Analyzing competitors' costs, prices, and offers, estimating the cost of the product and selecting the pricing method are all important steps in the pricing process but they come after determining the demand for the product.

After Determining Its Pricing Objectives, What Is the Next Logical