Some of the factors affecting price determination are: 1. Product Cost 2. The Utility and Demand 3. Extent of Competition in the Market 4. Government and Legal Regulations 5. Pricing Objectives 6. Marketing Methods Used and a Few Others. Factors Affecting Price Determination Factors Affecting Price Determination – 6 Factors Fixation of price is an important exercise for every firm. [...]
Pricing is one of the most important elements of the marketing mix, as it is the only element of the marketing mix that generates a turnover for the organisation. Pricing involves determination of the optimum price for a product by the marketer. "Price is the amount of money charged for a product or service or the sum of the values [...]
The three major categories of methods used to establish product prices are cost-oriented pricing, competition-oriented pricing, and demand-oriented pricing. A retailer may use one or a combination of the methods. The most common is cost-oriented pricing. A number of methods are prevailed for determination of the products price. Price is the only element of the marketing mix that produces revenue; [...]