Pricing constraints refer to
A)the controllable elements in a firm's marketing mix that allow it to charge the highest price possible.
B)formulas used in establishing break-even points, elasticity of demand, and marginal revenue figures.
C)factors that limit the range of prices a firm may set.
D)factors that enhance the range of prices a firm may set.
E)fluid and often imaginary boundaries used when setting the initial price on a new product.

Question

Quizplus · Accepted Answer

Pricing constraints are the factors that limit the range of prices a firm may set. These constraints could be external or internal, such as competitors' prices, industry standards, production costs, and target market's price sensitivity. Thus, pricing decisions must consider the pricing constraints to achieve a profitable pricing strategy.

Pricing Constraints Refer to