As a first step in the pricing process, a company should segment the market by
A) demographic variables.
B) psychographic variables.
C) geography.
D) income.
E) assessing the value created by its product.

Question

Quizplus · Accepted Answer

Assessing the value created by its product should be the first step in the pricing process. This involves understanding how customers perceive the value of the product and how much they are willing to pay for it. Once this information is gathered, the company can then determine which market segments are most willing and able to pay for the product and adjust pricing accordingly. While demographic, psychographic, geographic, and income variables are important in determining market segments, they should come after assessing the value created by the product.

As a First Step in the Pricing Process, a Company