Question

Two external factors which must be considered in pricing decisions are​ __________. A. the marketing mix and the nature of the market B. company objectives and the marketing mix C. the marketing mix and the economy D. demand and the nature of the market E. the marketing mix and demand

Answer 1

Answer:

The correct answer is D. demand and the nature of the market.

Explanation:

External factors: Nature of the market and demand

The price-demand relationship varies in different market classes, and how the way the buyer perceives the price affects the pricing decision. 4 types of markets .

• If there is pure competition: merchants in these markets do not devote much time to marketing strategy. There is no charge for the products. It is standardized.
• In monopolistic competition: it is within a price range, it can vary by quality, or the services that accompany it.
• In oligopolistic competition: they can be uniform products or not, they are constantly watched over the competition. If prices rise, buyers will quickly change them as a supplier. There are few vendors and it costs others to enter.
• In a pure monopoly: a market formed by a single supplier, unregulated monopolies have the freedom to set their prices, however they do not take advantage of them for several reasons, not to attract competition, fear of regulation and to penetrate the market.
• Demand curve: curve that shows the number of units that the market will buy in a specific period at the different prices that could be charged.
• Price elasticity: Measurement of the sensitivity of demand between changes in the price. It is obtained with the following formula: Elasticity of demand with respect to price = percentage of change in the amount of demand Percentage of change in price