Due to the environment it is difficult to predict costs and revenues etc. Return to Content List Other marketing Mix variables , All marketing mix variables are interrelated. IE price determines the quality status. Effects the margin for wholesalers and retailers. Channel Member Expectations , Expect to receive a profit for services performed.
Cooperation depends on the equitable distribution of costs and profits within the channel.
Need to estimate the amount of products demanded at each price level. Used by firms that sell directly to consumers. Price decisions revolve around what people will pay. Range of acceptable prices, used when firm believes that price is key factor in consumer decision making process. Price ceiling is the maximum the consumers will pay for a product.