Question

EXPLAIN how the product pricing (fee) is determined and DISCUSS the importance of determining the correct fee

Answer 1

What is product pricing?

Product pricing refers to the process of translating the product value into quantitative terms.

Importance of product pricing

Product pricing offers flexibility which helps to adjust the value of the product when necessary.

Product pricing is also essential in sales and marketing as it creates the first impression on a customer.

By pricing a product, a business can assign a value that ensures competitive advantage.

The raw materials used in making a product are accounted by a -product is assigned a price. Therefore, the price is expected to account for the raw materials.