Question

What are the components of ‘price mix’?

Answer 1

1. The price mix includes decisions on the product's base price, discounts, allowances, credit, and payment terms, among others. Price refers to the monetary value that a consumer must pay in exchange for the product.
2. Price mix should be determined taking into account the cost of producing and marketing the product, the purchasing power of the target customer group, the level of competition in the market, the seller's desired profit margin, discounts and allowances to be offered to dealers and customers as incentives, and so on.