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4.9 Factors to consider when pricing a product - Match-up

Match-up definitions and answers with key terms and examples. Press submit to check your answers.

Income levels of target customers
Price of competitor products
Cost of production
Stage of the product lifecycle
Willingness to pay
Economic conditions
Image of the business
Profit target
Weighing up the factors


Answers
Deciding which considerations matter most for a particular start-up, since their importance changes with the situation.
What rival businesses charge for similar goods, which customers compare before deciding where to buy.
How much money the people a business aims to sell to have, which affects what they can afford.
The point a good has reached from introduction to decline, which affects the price a business can charge.
The state of trade and wealth in a country, such as growth or recession, which affects customer spending.
The impression a company wants its customers to have, which can justify a higher or lower price.
The money spent making a good, which must be lower than its selling price to make a profit.
How much money an enterprise aims to make from each sale, which influences the price it sets.
How much customers are prepared to spend on a good, which limits the price a business can charge.
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