Chapter 13, Problem 13.1Q

What are the three major influences on pricing decisions?

To determine

Pricing Decisions:

Pricing decisions are those decisions that are related to ascertain the price of a particular product or services.

To identify: The factors that influence the pricing decisions.

Answer to Problem 13.1Q

The tree most important factor that influences the pricing decision is as follows,

• Customers
• Competitors
• Costs

Explanation of Solution

• Customers are the most important factor that influences the pricing decisions as the price of a particular product is influenced by the customers demand and supply of those particular goods.
• Competitors are also an important factor that influences the pricing decisions as the manager ascertain the cost of its competitors as to make changes while pricing and it also tells managers as how much the price would be set by the competitor.
• Costs is another factor that influences the pricing decisions as lower the cost the more the company can produce and can sell in major volume.

Conclusion

Hence, the factors that influence decisions are customers, cost, and competitors