An external issue to be considered when setting a price is
A)the quality of competing products or services.
B)the quality of materials and labor.
C)a price geared toward a minimum return on investment.
D)the total costs of the product or service.

Question

Quizplus · Accepted Answer

The quality of competing products or services is an external issue to be considered when setting a price. This is because customers will compare the quality of different products before making a purchasing decision, and if a company sets a price too high without taking into account the quality of its competitors, it may lose customers to those competitors who offer better quality at a lower price.

An External Issue to Be Considered When Setting a Price