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Q. Describe briefly the concept of pricing and the factors that influence pricing.
Ans.: Price is all around us. We pay rent for our apartment, tuition for our, railways, education, buses charge, airline you a fare, local bank charge interest for the money a fee to your doctor etc. therefore price is not just a number on a tag or an item.Traditionally, price has been the main determinant of a buyer's option and it is the only element in the marketing mix that produces revenue. Costing acquires its significance on account of yet another factor. It is a highly risky decision area and mistakes in costing seriously affect the firm, its, growth, profits & future.
Factors Influencing Pricing: There are internal along with external factors that affect pricing:-
Internal Factors:
External Factors:
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