Which of the following is an example of an environmental influence on pricing decisions?
A) The cost structures used by competitors.
B) The stage of the life cycle that a product is in.
C) Rate-of-return or target pricing being used by manufacturers.
D) The economic strength of potential buyers.

Question

Quizplus · Accepted Answer

Two of the most important environmental factors are competition and government regulation. The firm must consider its competition and how competition will react to the price of the product. Initially, consideration must, among other factors, be given to cost structure of competitors.

Which of the Following Is an Example of an Environmental