The development of a pricing strategy for a new or an existing product should begin with:
A) the creation of a product prototype.
B) an analysis of consumer-product relationships.
C) the creation of a strong advertising campaign.
D) the finalization of all other aspects of the marketing mix.
E) the choice of an external price reference.

Question

Quizplus · Accepted Answer

Before deciding on a pricing strategy, it is important to understand the relationship between the product and its target consumers. Factors such as consumer behavior, preferences, and willingness to pay must be analyzed in order to determine the optimal pricing strategy for the product. Therefore, an analysis of consumer-product relationships should be the starting point for developing a pricing strategy.

The Development of a Pricing Strategy for a New or an Existing