After determining its pricing objectives, what is the next logical step a firm should take in setting its pricing policy?
A) It should analyze its competitors' costs, prices, and offers.
B) It should select its pricing method.
C) It should select its final price.
D) It should determine the demand for its product.
E) It should estimate the cost of its product.

Question

Quizplus · Accepted Answer

After determining its pricing objectives, the next logical step a firm should take in setting its pricing policy is to determine the demand for its product. This will help the firm to understand the market and their customer's willingness to pay for the product, which will enable them to set a price that is acceptable to both the firm and the customers. After analyzing the demand, the firm can then move on to selecting a pricing method and ultimately selecting the final price that will maximize profits and meet their pricing objectives. Therefore, the correct answer is D.

After Determining Its Pricing Objectives, What Is the Next Logical