Which of the following has the most impact on setting a market-based price?
A)Changes in quality of the product or service
B)Prices charged by the company's suppliers
C)The efficiency of the company's supply chain
D)Demand for the service or product

Question

Quizplus · Accepted Answer

Demand for the service or product has the most impact on setting a market-based price. As the demand for a product or service increases, the price tends to increase as well due to the limited supply of the product or service. Conversely, as demand decreases, the price tends to decrease as well. Therefore, it is important for companies to understand the demand for their product or service in order to set an appropriate market-based price. Choices A, B, and C may impact the production costs of a product or service, but they do not have as direct of an impact on setting the market-based price as demand does.

Which of the Following Has the Most Impact on Setting