The Three Major Considerations in Price Setting Are: Costs Set

question 36

Multiple Choice

The three major considerations in price setting are: costs set the floor price; ________; and customers' assessment of unique features establishes the price ceiling.

• A) competitors' prices and the price of substitutes provide an orientation point
• B) competitors' prices establishes a "target price" goal
• C) the price of substitutes establishes a "target price"
• D) the price of competitors and substitutes does not enter into the pricing considerations.
• E) none of the above

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Definitions:

True Conditions

True conditions refer to circumstances or parameters that are in accordance with fact or reality.

Problem Space

The cognitive framework within which all possible actions, states, and goals are considered by an individual when solving a problem.

Possible Outcomes

Various end results or consequences that may occur as a result of specific actions or decisions in a given scenario.

Directed Remembering

A task in which individuals are instructed to remember information in a controlled or specific manner.