Which of the following statements about consumer demand as a pricing constraint is most accurate?
A) The number of potential buyers for the product class has little effect on the price a seller can charge.
B) The number of potential buyers for the product affects the price a seller can charge, but only if the product is using a push strategy in the channel.
C) The number of potential buyers for the product affects the price a seller can charge, but only if the product is a necessity item.
D) The number of potential buyers for the brand affects the price a seller can charge in the growth stage of a product life cycle, but not in the introductory stage.
E) The number of potential buyers generally affects the price a seller can charge.

Question

Quizplus · Accepted Answer

Consumer demand is a critical pricing constraint as the number of potential buyers generally affects the price a seller can charge. The higher the demand for a product, the more a seller can charge for it. On the other hand, if there is low demand, prices must be lowered to attract buyers. This applies to all stages of the product life cycle and all product categories, not just necessity items or push strategies. Therefore, option E is the most accurate statement.

Which of the Following Statements About Consumer Demand as a Pricing