Marketing - Price - Setting a price

Question 1

Name the 5 factors a business must consider when setting a price

Answer 1

• Competition
• Quality of Raw Materials
• Image
• Production cost
• Profit per Unit

Question 2

Explain how competition relates to the process of setting a price

Answer 2

A business can copy competitors when it comes to pricing or use its own pricing strategy.

Question 3

Name the 5 factors a business must consider when setting a price

Answer 3

• Competition
• Quality of Raw Materials
• Image
• Production cost
• Profit per Unit

Question 4

Explain how the quality of raw materials used relates to the process of setting a price

Answer 4

The price should reflect the quality of raw materials used

Question 5

Explain how image relates to the process of setting a price

Answer 5

The price will reflect a customer’s perception of a product.

Question 6

Explain how production cost relates to the process of setting a price

Answer 6

The price should be set higher than the production cost

Question 7

Explain how Profit per unit relates to the process of setting a price

Answer 7

The business must consider how much profit they want to make on each product