Price setting is based on the marketer's ability to strike a balance between desired profits,and the customer's perception of a product's value.

Question

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Price setting is a strategic decision that is influenced by multiple factors such as competition, market demand, production costs, and the perceived value of the product by the customers. One of the key considerations in price setting is to ensure that the product's price aligns with the customer's willingness to pay, and at the same time, generate the desired profits for the company. Therefore, it is critical for marketers to strike a balance between profit goals and customer value perceptions when setting prices.

Price Setting Is Based on the Marketer's Ability to Strike