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Question:
With the recent upsurge in inflation pressures, there has been growing concern expressed by consumer groups, unions and opinion leaders about the erosion purchasing power. Government has responded by setting up a Price Advisory Committee and it has also made an appeal to operators to consider revising their prices downwards to mitigate the impact of high prices on households.
In your capacity as Marketing Consultant, you have been invited by a group of fresh graduates to share your experience on pricing decisions.
Prior to your presentation, you have been asked by your Team Leader of the consulting firm, to forward to her, your discussion notes along the following lines:
a. List and explain the factors that influence price setting
b. Explain the different pricing methods
c. Give your views on the most appropriate pricing method(s) in the context as described above.
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