The Pricing Model in Your Text, Has Six Distinct Steps

question 168

Multiple Choice

The pricing model in your text, has six distinct steps in the pricing process. Considering the following list of steps in setting prices: identify pricing constraints and objectives; estimate demand and revenue; estimate cost, volume, and profit relationships; select an appropriate price level;__________ ; and make special adjustments to the list or quoted price.

• A)scan competitors for price lines for similar products or services
• B)select the appropriate pricing formula
• C)test market the product or service to check for elasticity of demand
• D)set the list or quoted price

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Definitions:

Price Dimension

Refers to the components that make up the pricing structure of a product or service, including base price, discounts, and surcharges.

Sales Period

The Sales Period is a specific timeframe during which a company focuses on selling a product or service, often aligning with marketing campaigns or seasonal demands.

Hockey Stick Phenomenon

A sudden and significant increase in activity, sales, or performance, often occurring after a period of flat or unremarkable performance.

Post-Ownership Costs

Expenses incurred after purchasing a product, including maintenance, repair, and operational costs, affecting the total cost of ownership.