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Customer Demand Is an Important Consideration in Establishing Prices

question 9

Multiple Choice

Customer demand is an important consideration in establishing prices. Demand, or at least potential demand, actually establishes the ___________ for a firm's prices.


Definitions:

Franchising

A method of conducting business where a franchisor licenses trademarks and proven methods of doing business to a franchisee in exchange for a recurring payment, and usually a percentage of gross sales or gross profits.

Market Analysis

The study of the market within an industry, including the analysis of supply and demand, target demographic, and competition.

Franchise

A type of license that grants a franchisee access to a franchisor's proprietary knowledge, processes, and trademarks, allowing them to sell a product or service under the franchisor's business model.

Questions

Inquiries made to seek information or clarity about a particular subject.

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