WAEC Marketing 2023 Theory — Question 11

Model answer

1. Demand for the product - the manufacturer would consider the demand for the product before setting the price. 2. Cost of production - the total cost incurred in producing a product would determine the price of the product. 3. The nature of the product - the characteristics of the product in terms of fragility and perishability would influence the final price of the product. 4. Competition - the producer would examine its rivals'/competitors' product prices before setting its own prices. 5. Expected profit - the profit a manufacturer expects to make on its products would be considered before setting the price for its products. (Other acceptable: Company's objectives - the objectives a manufacturer intends to establish for the business or with its pricing strategy would determine the price it sets; Product quality - products with high quality are set at high prices to cover the cost of innovation.)