Which of the following would be an example of a constraint in Step 1 of the price-setting process?
A)We can rely on our reputation for our other products in the line.
B)Experts are predicting a surge in global demand.
C)We need to make allowances for large quantity orders.
D)We should increase the price during the holiday shopping season.
E)Remember, we don't know what the selective demand for this new product will be.

Question

Quizplus · Accepted Answer

A constraint in Step 1 of the price-setting process refers to any limiting factor that influences the pricing decision. In this case, the constraint is the lack of knowledge about the selective demand for the new product, which means the company cannot set a price based on consumer demand. The other options describe factors that could affect pricing decisions, but they do not represent constraints.

Which of the Following Would Be an Example of a Constraint