Which of the following statements is true about the determination of a specific price for a product?
A) Price elasticity is not relevant when determining a specific price.
B) It occurs in the fifth stage of the price-setting process.
C) Only fixed costs should be considered when setting the specific price.
D) When no government controls exist, pricing is a flexible way to adjust the marketing mix.
E) Demand is not a consideration when establishing a specific price.

Question

Quizplus · Accepted Answer

When there are no government controls, pricing is a flexible way to adjust the marketing mix, taking into account the competition, costs, and demand. Price elasticity is also relevant in determining the specific price, as it measures how responsive demand will be to a change in price. Both fixed and variable costs should be considered when setting the specific price, as well as the desired profit margin. Demand is also a critical consideration, as it determines how much customers are willing to pay for the product. In general, determining a specific price is a complex process that involves analyzing various factors and balancing competing objectives.

Which of the Following Statements Is True About the Determination