Question

Candice is working on pricing strategy for her new line of workout clothes in addition to setting the standard for her products and determining her profit values which is another outcome of setting the price for her products determining how well products compete in the marketplace identifying want to offer discounts and sales incentives deciding of the products of the customer problem defining customer value

Answer 1

While setting the price for her new line of workout clothes, Candice will also need to consider other outcomes such as:

1. Determining how well products compete in the marketplace: Candice will need to research and analyze the prices of her competitors in the market to ensure that her pricing strategy is competitive and appealing to her target audience.

2. Identifying when to offer discounts and sales incentives: Candice may need to offer discounts and sales incentives at certain times of the year or during special events to increase sales and attract new customers.

3. Defining customer value: Candice will need to understand the value that her products offer to her customers and ensure that her pricing strategy reflects this value.

4. Deciding on the products of the customer problem: Candice will need to consider the price sensitivity of her target audience and ensure that her pricing strategy does not create any problems for her customers.

In summary, while setting the price for her new line of workout clothes, Candice will need to consider various factors such as competition, discounts, customer value, and price sensitivity to ensure that her pricing strategy is effective and appealing to her target audience.

Answer 2

Candice is working on a pricing strategy that involves calculating production costs and desired profits to set competitive prices for her workout clothing line. The strategy is influenced by supply and demand and competitive market dynamics. The goal is to maximize profits while providing value to customers.

Step-by-step explanation:

Candice is involved in setting a pricing strategy for her workout clothes line. An essential part of this strategy includes determining the cost of production and the desired profit to arrive at a suitable price for her products. This process ensures her workout clothes are priced competitively in the marketplace and align with her brand's value proposition.

The pricing strategy can impact the business in several ways, such as helping to determine competitiveness, setting a standard for the products, deciding whether to offer discounts and sales incentives, and ultimately defining customer value. The law of supply and demand, along with market competition, greatly influences these decisions. When the demand exceeds supply, prices may rise, and when the supply exceeds demand, prices may decrease.

Furthermore, in a competitive market, firms must consider their profit-maximizing quantity of output to set prices effectively. For example, after determining the optimal quantity of output, a business can refer to its perceived demand curve to decide the right price. This approach helps the firm to maximize profits while being competitive in its pricing.