Which of the following is the first step in setting a pricing policy?
A) selecting the pricing objective
B) selecting a pricing method
C) determining demand
D) estimating cost
E) analyzing competitors' costs, prices, and offers

Question

Quizplus · Accepted Answer

Selecting the pricing objective is the first step in setting a pricing policy as it lays the foundation for all subsequent pricing decisions. The pricing objective can be to maximize profits, increase market share, maintain market leadership or simply survive in the market. Once the objective is set, the company can then determine the pricing method, estimate costs, determine demand and analyze competitors' costs, prices, and offers to arrive at an optimal price.

Which of the Following Is the First Step in Setting