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Factors Affecting Price Determination - Coggle Diagram
Factors Affecting Price Determination
Product cost
High production cost- High price
Low production cost- low price
Utility and Demand
Utility
More utility-more price Less utility- Less price
Demand
inelastic demand- high price Elastic demand- low price
Extent of competition
Less degree of competition- high price
Low degree of competition- low price
Government and legal regulations
Essential commodities, government regulates prices
Marketing methods used
Better/ unique more price
Pricing objectives
Profit maximisation
Short run- high price long run- low price
Obtaining market leadership
High degree of control- Low price Low degree of control- high price
Survival in a competitive market
Survive- Low price
Face difficulty- high price
Attaining product quality leadership
High quality- high price Low Quality- low price