Step 1 of the Price-Setting Process Identifies Pricing Objectives and Constraints

question 128

Essay

Step 1 of the price-setting process identifies pricing objectives and constraints. Describe the reasons these objectives may change and give examples of objectives a firm may set.

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Definitions:

Open Systems

A system is open or closed to the degree that it can exchange information and energy with its environment. A more open system can adapt to environmental changes.

Closed Systems

A system is open or closed to the degree that it can exchange information and energy with its environment. A closed system cannot adapt to environmental changes and is more likely to move toward entropy.

Levels

Different stages or degrees in a hierarchy or process.

Dynamic Function

The ability or process within a system or entity to change or evolve over time in response to external and internal conditions.