Title: Explain key factors in determining the selling price for a good or service.
Course: Marketing Management (12166) > Section: Pricing Products and Services

Explanation should include a description of how internal factors (e.g., cost of goods, operating expenses, product mix) and external factors (e.g., supply, demand, government regulations, competition, natural and economic events) determine the selling price, including the following differences:

- Pricing goods should take into account manufacturing, shipping, packaging, advertising, customer service, and storage costs.
- Pricing services should take into account labor costs, related product costs, and related equipment costs.

Process/Skill Questions:

- How do competitors affect retail sales, both in-store and online?
- How do the global economy and political climate affect price? How can this be seen in today’s market?
- What effect do expenses have in determining the selling price?
- How does the stage in the life cycle affect pricing the product?
- How does pricing affect market share?
- When might it be wise for a business to review and/or update its pricing?