¡°Critically evaluate the factors a firm might consider when setting the prices of its products¡±

¡°Critically evaluate the factors a firm might consider when setting the prices of its products¡±

According to Marcouse (1999) ¡°price is one of the main links between the customer and the producer¡±. The simplest definition of price is the amount charged for a product or service. Setting the right price of a product is very important for a firm because is the only element in the marketing mix that produces revenue. It can also be very difficult to determine the right price of a product because there are several factors that a firm might consider before putting the price. The examination of these factors is vital for a firm because if the price is not ¡®right¡¯ (for the consumers) they may lose customers or lose revenue. Therefore, I will critically evaluate some of the internal and external factors a firm might consider when setting prices.


Source: Kotler and others (1994)

The graph above shows the various factors affecting the price decisions of ...