Why is the concept of pricing so important to the profitability of a company?
A) Pricing a product or service too high for the market may result in lost sales to competitors.
B) Pricing a product too low may result in lost sales due to the customer perception of lower quality.
C) Prices must adequately cover all costs for the company to show operating income.
D) All of these impact pricing and its impact on the profitability of a company.

Question

Quizplus · Accepted Answer

All the options provided impact pricing and its effect on profitability, as they relate to competitive positioning, customer perception, and cost coverage.

Why Is the Concept of Pricing So Important to the Profitability