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In which situation should an entrepreneur consider changing pricing?

Answer and explanation

Correct answer: When cost and customer value are changing

Pricing should reflect the cost of providing the product, the value customers perceive, demand, and competitive conditions. If costs rise or the customer’s perceived benefit changes, the old price may reduce profit, sales, or both. The entrepreneur should analyse evidence before revising price and may also improve the product or process. A liked name, shop colour, or friends’ praise is not sufficient pricing evidence.

Related tags

PricingCustomer-ValueEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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