PRICE Flashcards
1
Q
What are the 4 key factors that influence the price of a product or service?
A
- Cost
- Product Life Cycle
- Nature of product ( Is it luxury or similar to other competitors)
- Degree of competition
2
Q
What is price?
A
The money charged for a good or service
3
Q
Why is price important?
A
- Pricing decisions directly affect revenue
- Must be consistent with other elements of the marketing mix, as it will directly affect the consumer’s perception of a good or service
4
Q
What is the link between price and demand?
A
For most products an increase in price = a decrease in demand.
