Question : Which of the following statement is correct?
Statement 1: Price is influenced by the marketing method used by the company.
Statement 2: Purchasing power of customers should not be taken into consideration while fixing the price.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Correct Answer: Statement 1 is true and statement 2 is false.
Solution : Purchasing power of customers is the factor determining fixation of price. The purchasing power of customers should be taken into consideration while fixing the price of a product or services. Price in influenced by the marketing method used by the company example commission which is to be paid to the middleman for sale of the goods is also added to the price.
Hence, option C is correct.
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