Basic to setting a product's price is the extent of __________. This information is used in estimating the revenues the firm expects to receive.
A)management's commitment to the product relative to other products in the line
B)curiosity or interest potential consumers expressed during market testing
C)customer demand for it
D)the firm's promotional budget
E)distribution requirements

Question

Quizplus · Accepted Answer

Customer demand is a key factor in setting a product's price as it helps the firm estimate the revenues it expects to receive. Management's commitment to the product, consumer interest during market testing, promotional budget, and distribution requirements may also influence price setting, but customer demand is fundamental.

Basic to Setting a Product's Price Is the Extent of __________