What should be considered while pricing?
Answer and explanation
Correct answer: Cost, customer, and market
Pricing should consider the cost of producing or acquiring the offering, what target customers are willing to pay, competitor prices, demand, and the value delivered. Balancing these factors helps a business remain viable while offering an acceptable price. Shop colour or a holiday alone provides no sound pricing basis, and giving everything free does not normally support recovery of costs or sustainability.
Frequently asked questions
What is the correct answer to this question?
Cost, customer, and market
Why is this the correct answer?
Pricing should consider the cost of producing or acquiring the offering, what target customers are willing to pay, competitor prices, demand, and the value delivered. Balancing these factors helps a business remain viable while offering an acceptable price. Shop colour or a holiday alone provides no sound pricing basis, and giving everything free does not normally support recovery of costs or sustainability.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Concept, characteristics and objectives of business.
