When Setting Prices, a Company Must Consider Factors in Its

question 14

Multiple Choice

When setting prices, a company must consider factors in its pricing environment. ________ such as the business cycle, economic growth, and consumer confidence can have a significant impact on the firm's pricing strategies.

• A) Consumer trends
• B) Economic trends
• C) Competitors' responses
• D) Regulations
• E) Market structures

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Definitions:

Segmentation Strategy

The method of splitting a wide market of consumers or businesses, which includes both existing and potential clients, into smaller segments according to certain common traits they share.

STP Process

Acronym for Segmentation, Targeting, and Positioning, a strategic approach in marketing to identify target audiences and develop tailored marketing strategies.

Target Market

The specific group of consumers at which a company aims its products and services.

Segmentation Process

The act of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups based on some type of shared characteristics.