Asked by Shilpa Heald on Jun 12, 2024
Verified
Which of the following statements regarding the manufacture of new products is/are true?
i. Uncertainties about the potential market for the product pose problems when pricing these products.
ii. Uncertainties regarding obstacles that will be encountered in manufacturing these products pose pricing problems.
iii. Uncertainties about production costs will not influence pricing decisions because these types of products are generally sold in a non-competitive market.
A) i
B) iii
C) i and ii
D) All of the given answers
New Products
Items or services that have been recently developed, introduced, or brought to market.
Manufacturing Obstacles
Challenges or hindrances encountered during the production process that can lead to inefficiencies or increased costs.
Uncertainties
The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.
- Familiarize yourself with the disparities and applications associated with diverse pricing strategies, namely skimming, penetration, and predatory pricing.
Verified Answer
ST
Sushan ThapaJun 15, 2024
Final Answer :
C
Explanation :
Uncertainties about the potential market for a new product pose problems when determining the price, as it is difficult to predict how much customers will be willing to pay. Similarly, uncertainties regarding obstacles in manufacturing the product can also affect pricing decisions, as any unexpected costs or delays may need to be factored in. However, statement iii is false, as production costs will always be a consideration in pricing decisions, regardless of market competitiveness.
Learning Objectives
- Familiarize yourself with the disparities and applications associated with diverse pricing strategies, namely skimming, penetration, and predatory pricing.