What is price? Explain the factors which influence prices of product.
Answers
Answer:
PRICE: The value you pay to buy some value is the price where value could be anything like currency, things, love, feelings, service, emotions, work, etc. Basically the price is the monetary worth of the product (for end customer).
Factors which influence prices of product:
- Cost of the product
- Utility and Demand of the product
- The extent of Competition in the Market
- Government and Legal Regulations
Answer:
Price of a product and factors influencing price
Explanation:
Price of a product refer to the compensation given in exchange of a product.In early times there was barter system where product used to be bought in exchange of another product but later a proper monetary business system was introduced.
1)Product Cost: The most important factor affecting the price of a product is its cost.
2)The Utility and Demand: Usually, consumers demand more units of a product when its price is low and vice versa.
3)Extent of Competition in the Market
4)Government and Legal Regulations
5)Pricing Objectives
6)Marketing Methods Used