The first step in determining product price is:
The first step in determining product price is:
The first step in determining product price is developing pricing objectives. This involves setting clear and strategic goals for what the company wants to achieve with its pricing, such as penetrating the market, maximizing profit, or discouraging competition. Establishing these objectives provides direction for all subsequent pricing decisions and ensures alignment with broader business goals.
B looks correct ... because without the pricing objective organization would not able to set appropriate pricing for example what is the objective of entering into the market for price skimming , creating barrier of entry for the new competitors or beating current competitors with low price initially so there are lot of motive for the organization . option B is correct to me
In my opinion it should be A
Theoretically it might not be. For example, loss leaders, where the objective is to not make a profit or recover the cost but to incite the purchase of other items.
it is just like the target, after we decide the price target, we will decide the materials and so.