In which situation would product pricing be considered weak?
Answer and explanation
Correct answer: When price is set without considering cost, customer value, and competition
Sound pricing considers production or delivery cost, the value customers perceive, competitors’ prices, and the required profit margin. Setting a price without examining these factors is weak because it may cause losses, low demand, or an unrealistic market position. The other options describe useful pricing considerations.
Frequently asked questions
What is the correct answer to this question?
When price is set without considering cost, customer value, and competition
Why is this the correct answer?
Sound pricing considers production or delivery cost, the value customers perceive, competitors’ prices, and the required profit margin. Setting a price without examining these factors is weak because it may cause losses, low demand, or an unrealistic market position. The other options describe useful pricing considerations.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
