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An entrepreneur considers cost, customer willingness to pay, and competitor price together while setting product price. What type of decision is this?

Answer and explanation

Correct answer: Strategic pricing

Pricing is strategic when it is based on several connected considerations rather than a random guess. Cost sets a financial constraint, customer willingness to pay reflects perceived value and demand, and competitor prices indicate the market context. Balancing these factors helps the entrepreneur choose a price that supports both sales and viability.

Related tags

PricingMarketing-StrategyPriceMarketing ManagementBusiness StudiesClass 12 Mcq

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