Final answer:
Employee salaries are not a direct factor in the pricing decisions of products. Instead, production costs, competitor pricing, and customer willingness to pay are the main factors that directly influence product pricing.
Step-by-step explanation:
When setting the price of a product, various factors must be considered to ensure the product is competitively priced and profitable. Among the factors listed, employee salaries do not need to be taken into consideration as a direct factor in pricing decisions. While employee salaries are a part of general costs of production, they do not typically affect the decision-making process regarding the end pricing of a product. Instead, factors such as production costs, competitor pricing, and customer willingness to pay are directly tied to setting a product's price. Production costs are vital as they determine the baseline amount that a product needs to be sold for the company to make a profit. Competitor pricing helps establish where the product fits in the market, and customer willingness to pay is key to ensuring that the product has a viable target audience willing to purchase at the set price.
Furthermore, sellers must consider the prices of related goods in production, sellers' expectations, and the number of sellers in the market, as these factors can affect overall supply and therefore influence pricing strategy.