Question detail
PeakPods serves local families while changing supplier; the case evidence includes gross profit margin of ?6,670, sales of 715 units, and a 41% change in costs or demand. Which option best applies Explain factors influencing pricing decisions, including costs, market nature, competition and product life cycle?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
The elements of the marketing mix: price, product, promotion and place
Question
- A. Use including, influencing, pricing, factors to judge capacity utilisation, lenders impact, and the business objective in Price.
- B. Give only a definition of The elements of the marketing mix: price, product, promotion and place without using the case evidence.
- C. Treat stakeholders and shareholders as identical and ignore the effect on lenders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use including, influencing, pricing, factors to judge capacity utilisation, lenders impact, and the business objective in Price.
Explanation
Choose this response because Use including, influencing, pricing, factors to judge capacity utilisation, lenders impact, and the business objective in Price. The case evidence gives ?8,170, 715 units, and 41%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse stakeholders and shareholders, miss the lenders, or ignore the business objective.
Common mistake
Price common mistake 1
Giving a vague answer instead of directly addressing: Explain factors influencing pricing decisions, including costs, market nature, competition and product life cycle..
Answer by clearly explaining how to explain factors influencing pricing decisions, including costs, market nature, competition and product life cycle..
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