Setting Prices When setting prices, the company also must consider other factors in its external environment. Economic conditions can have a strong impact on the firm’s pricing strategies. Economic factors such as boom or recession, inflation, and interest rates affect pricing decisions because they affect both the cost of producing a product and consumer perception.
External Environmental Factors and How Its Effect Business when setting price, the company must consider its external environmental. Discribe four external environmental factors and how they affect business?when would price cuts and price increase be necessary? explain each of these clearly.Other External Factors:When setting prices, the company also must consider other factors in its external.
