Which of the following factor do not affect the price determination of a product?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Sales of the product
Sales of the product (the actual volume of goods sold) is a result of the price decision and other marketing factors. Sales figures are used after the product is launched to evaluate and adjust the price, but they do not factor into the initial determination of the price itself.
Factors that do affect price determination include:
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Product cost → Sets the minimum price (cost + profit margin).
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Extent of competition → Strong competition may force lower prices.
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Utility and demand → Higher demand and greater utility allow higher pricing.