Answer to Question #125060 in Marketing for Ally Ahmed

Question

Discuss the internal and external factors involved in setting the price of a new product

Answer 1

Internal factors influencing product price include the cost of manufacturing the product, the predetermined objectives of the firm regarding the product, the image of the company, the life cycle of the product and the weight of the promotional activity. Alternatively, external factors include competition in the market, consumer factors such as price sensitivity and purchasing power, government control and the economic conditions of the market.