Suppose You Are the Marketing Manager for a Furniture Company

Multiple Choice

Suppose you are the marketing manager for a furniture company. The company is getting ready to release a new line of dining tables and china cabinets that feature hand carving. This requires approximately 10 hours of additional labour than tables and cabinets that do not have hand carving. As a result, you decide that your company must price these items higher. Your pricing decision is based on which of the following considerations?

A) the economy currently being in a recession, and customers having less disposable income
B) what competitors charge for similar items
C) the maximum price customers are willing to pay
D) increased manufacturing costs due to higher labour costs