Read the case and answer the question:

Shiva owns a small business of manufacturing notebooks. He has started this business in the basement of his house. His son Ganesh, helps him in selling note books to school students. Ganesh would go to schools near his home and sell them outside the schools. Shiva would go to metro station to sell the notebooks. Shiva has kept different variety of notebooks under the category of different colours, like Red colour notebook has plain sheets, Green colour notebooks ruled sheets and yellow colour means one side plain and other side ruled sheet. When Shiva started the business, he was not able to give a name to his product (Notebook). He developed the name later on, when Ganesh told him that without a name they can never be sure of the sale for their notebook so Shiva kept the name as 'Ganesh classic' notebook. He also added distinct mark to it. He kept the price low so as to attract more customers and used direct channel of distribution.

Which factor affecting decision related to price fixation has been kept in mind by Shiva and Ganesh?

Pricing objectives

The correct answer is Option (3) → Pricing objectives.

The factor affecting decision related to price fixation that Shiva and Ganesh have kept in mind is Pricing objectives.

Shiva has kept the price low to attract more customers. This indicates that their primary objective is to maximize sales and reach a larger customer base. By setting a low price, they aim to appeal to more school students, which aligns with their goal of increasing sales and establishing their brand. This approach reflects their pricing objective of attracting customers through affordability.