Factors Affecting Pricing Product: For instance, if the objective of a firm is to increase return on investment, then it may charge a higher price, and if the objective is to capture a large market share, then it may charge a lower price.
If there is high competition, the prices may be kept low to effectively face the competition, and if competition is low, the prices may be kept high. But increasing productivity may require major changes at the manufacturing facility that will take time not to mention be costly and will not translate into lower price products for a considerable period of time.
This cost includes both the variable and fixed costs. The longer the chain of intermediaries, the higher would be the prices of the goods. The price of the product may also be determined on the basis of the image of the firm in the market.
Image of the firm: The marketer must consider a number of channel intermediaries and their expectations. At the time of recession, the consumer may have less money to spend, so the marketer may reduce the prices in order to influence the buying decision of the consumers.
The pricing of the product is also affected by the credit period offered by the company. The marketer should consider various consumer factors while fixing the prices. The pricing decisions for a product are affected by internal and external factors. The stage at which the product is in its product life cycle also affects its price.
Internal Factors — When setting price, marketers must take into consideration several factors which are the result of company decisions and actions. However, while the organization may have control over these factors making a quick change is not always realistic. Government rules and regulation must be considered while fixing the prices.
Below we provide a detailed discussion of both internal and external factors. The consumer factors that must be considered includes the price sensitivity of the buyer, purchasing power, and so on. The final price for a product may be influenced by many factors which can be categorized into two main groups: Internal Factors and External Factors Article shared by: For instance, product pricing may depend heavily on the productivity of a manufacturing facility e.
Longer the credit period, higher may be the price, and shorter the credit period, lower may be the price of the product. Understanding these factors requires the marketer conduct research to monitor what is happening in each market the company serves since the effect of these factors can vary by market.
If the firm incurs heavy advertising and sales promotion costs, then the pricing of the product shall be kept high in order to recover the cost.
While fixing the prices of a product, the firm should consider the cost involved in producing the product. Thus, while fixing the prices, the firm must be able to recover both the variable and fixed costs.
External Factors — There are a number of influencing factors which are not controlled by the company but will impact pricing decisions.
To a large extent these factors are controllable by the company and, if necessary, can be altered. The promotional activity undertaken by the firm also determines the price.FACTORS AFFECTING SMARTPHONE PURCHASE DECISION AMONG MALAYSIAN GENERATION Y Karen Lim Lay-Yee mobile phone shipments (The Star (b), ).
external search. Whereas extended decision making normally will be on the high involvement. Environmental Analysis Of Mobile Phone Industry Marketing Essay. Print Reference this. Published: 23rd March, Inflation is also one of external factors affecting the company, therefore this issue must be considered because the company has no power over it (whereby money loses its value).
What range of pricing would you prefer for a. This research will find out that what are the key factors that can affect on mobile sales by using iPhone product and focusing on young people. which is 50% and then followed by feature, brand and trend at 40%, 20% and 20% in order.
As a result, it shows that the mobile phone company should pay the importance to application and feature. Start studying marketing chapter 9. Learn vocabulary, terms, and more with flashcards, games, and other study tools. external factors that could affect pricing decisions.
affecting factors of international company price decisions. 1. economic conditions. Mobile phone has diverse usages to different users in accordance with their necessities. With dramatic Liu () in a recent paper analyzed factors affecting the decision regarding brand in the mobile phone industry in Asia.
It was found that the choice of a mobile phone is characterized by two Pricing 14 Model at reduced price 8 factors that affect mobile app development pricing. Amit Aghara, VP, Product Management For external or BYOD users, you should assume that the app will have to work across every mobile device and platform.
Understanding the cost factors in the design and development process can help inform your mobile app business case. Add new comment.Download