RO67 - 4.9 - Factors to consider when pricing a product

What are the three key factors to consider when setting a price?

• Cost of production, customer income, competitor prices
• Cost of production, marketing costs, shipping costs
• Cost of production, R&D costs, marketing costs
• Cost of production, customer income, R&D costs

Why is it important to research competitors' prices?

• To make your product better
• To understand the market
• To increase production costs
• To reduce product quality

What can a higher price indicate about a product?

• Lower quality
• Higher quality
• Reduced functionality
• Increased production costs

Why should you consider production costs when pricing a product?

• To ensure the price covers costs
• To reduce customer interest
• To increase production costs
• To reduce product quality

How can customer income levels affect pricing decisions?

• By determining affordability
• By reducing production costs
• By increasing production costs
• By reducing product quality

What is one benefit of setting a higher price?

• Attracting budget-conscious customers
• Creating a premium image
• Reducing production costs
• Increasing production costs

Why might a company lower its product price?

• To reduce sales
• To attract new customers
• To increase production costs
• To reduce product quality

What is a potential downside of pricing a product too low?

• Customers may think it's low quality
• It will attract more customers
• It will increase production costs
• It will reduce production costs

How can competitor prices influence your pricing strategy?

• By setting a benchmark
• By reducing production costs
• By increasing production costs
• By reducing product quality

What should a company do if production costs increase?

• Lower the price
• Maintain the same price
• Adjust the price accordingly
• Reduce product quality