Which of the following are examples of elements involved in Step 1 of the price-setting process: identify pricing objectives?
A)profit,market share,and survival
B)estimation of demand,sales revenue,and price elasticity
C)cost estimation,marginal analysis,and break-even analysis
D)demand for the product class and brand,newness of the product,and competition
E)market segmentation targeting,and positioning

Question

Quizplus · Accepted Answer

Identifying pricing objectives involves determining the goals and targets that a company aims to achieve with its pricing strategy. Profit, market share, and survival are objectives that often guide pricing decisions. Estimation of demand, sales revenue, and price elasticity (B) are elements involved in Step 2 of the process, which is to estimate demand and revenue for the product or service. Cost estimation, marginal analysis, and break-even analysis (C) are elements involved in Step 3, which is to determine the cost structure of the product or service. Demand for the product class and brand, newness of the product, and competition (D) are elements involved in Step 4, which is to analyze the competitive environment and determine the pricing constraints. Market segmentation, targeting, and positioning (E) are elements involved in Step 5, which is to select a pricing strategy based on the analysis of Steps 1-4.

Which of the Following Are Examples of Elements Involved in Step