When finally setting the actual price of your product or service,there are several contextual factors including your company objectives,your marketing strategy,competition,channels of distribution,and legal and regulatory issues to consider.Which of the following statements is not true when considering these factors?
A) The customer's end price is usually higher than your price due to price escalation.
B) Pricing off a competitor's price is as easy as picking a percent,say 80%,and charging that price for your product or service.
C) Some forms of price discrimination are illegal.
D) Firms that compete on price may experience negative growth.

Question

Quizplus · Accepted Answer

Pricing off a competitor's price is not as easy as picking a percent, as there are many other factors to consider, such as the quality of your product or service and the value it provides to customers. Simply charging 80% of a competitor's price may not be profitable or sustainable for your business.

When Finally Setting the Actual Price of Your Product or Service,there