PRICING-INTERNAL AND EXTERNAL FACTORS

Which of the following is an internal factor that influences pricing?

• Market demand

• Government regulations

• Cost of production

• Competitor pricing

Which external factor plays a major role in determining how much consumers are willing to pay for a product?

• Production cost

• Company objectives

• Economic conditions

• Marketing strategies

How do competitors influence a company’s pricing strategy?

• by controlling the company’s cost structure

• By setting price expectations in the market

• By increasing the company’s production costs

• By dictating government regulations

What internal factor directly affects the minimum price a company can charge?

• Advertising expenses

• Consumer purchasing power

• Cost of goods sold

• Market trends

1. Government-imposed price controls or taxation are examples of which pricing factor?

• Internal factor

• External factor

• Cost-based factor

• Psychological factor

Which of the following is an external factor that affects pricing decisions?

• Brand reputation

• Target profit margin

• Technological advancements

• Product quality

1. How does consumer perception impact pricing?
   
   
   
   

• It determines the actual production costs of a product.

• It influences demand and willingness to pay.

• It sets government price regulations.

• It dictates the profit margin a company should aim for.

1. A company that sets its prices based on achieving a specific return on investment (ROI) is primarily considering which internal factor?

• Brand image

• Financial objectives

• Customer loyalty

• Competitive landscape

Which economic condition can lead to higher prices due to increased costs of raw materials?

• Recession

• Inflation

• Deflation

• Market saturation

A popular airline raises ticket prices during the holiday season. What external factor is influencing this decision?

• Customer demand

• Employee wages

• Advertising costs

• Production expenses