Which combination is most appropriate for pricing by an entrepreneur?
Answer and explanation
Correct answer: Cost, customer value, and competition
A sound price should cover relevant costs and support the business, while also reflecting the value customers perceive and the prices or offerings of competitors. Choosing only the highest or lowest price may reduce demand or profit, and guesswork ignores evidence. Therefore, combining cost, customer value, and competition provides the most balanced pricing basis.
Frequently asked questions
What is the correct answer to this question?
Cost, customer value, and competition
Why is this the correct answer?
A sound price should cover relevant costs and support the business, while also reflecting the value customers perceive and the prices or offerings of competitors. Choosing only the highest or lowest price may reduce demand or profit, and guesswork ignores evidence. Therefore, combining cost, customer value, and competition provides the most balanced pricing basis.
Which subject and chapter does this question cover?
This is a Class 12 Business Studies question. Chapter: Marketing Management. Topic: Price.
