Question

Explain elements that affect price policy ?​

Answer 1

Answer:

There are consumers who buy a product provided its quality is high. Generally, product quality, product image, customer service and promotion activity influence many consumers more than the price. These factors are qualitative and ambiguous. From the point of view of consumers, prices are quantitative and unambiguous.

Answer 2

The elements are marketing goals, marketing mix, competition, cost and competition.

Explanation:

Price policy is the one in which the same price is offered or provided to each and every customer, who bought or purchase the product under the same conditions.

The factors or the elements which affect the price policy are:

1. Marketing goals - The marketing goals of the product need to be kept in mind before setting the product price.

2. Cost - The company or the firm need to consider both the variable as well as the fixed cost when setting the product price.

3. Marketing mix - It is one of the vital and key elements of the marketing mix is price. Therefore, the marketing mix factor need to be considered while setting the price.

4. Competition - The competition affect the price of the product and the marketer must have the knowledge about the activities of the competitor.