Corporate objectives

The firm's corporate objectives: mass vs elite targets; presence vs dominance; profit or volume orientation; stability of prices etc. - do you want stable, long-term prices?

1. Nature and structure of competition: market position: leader (price maker) or follower (price taker); degree of aggressiveness; degree of differentiation that can be maintained. How strong a company are you?
2. The product life cycle: price changes over the life depending on the length of the cycle, the scope that is product technology; the firm's profit expectations; also, the firm's cost structures etc.
3. Influences and expectations change towards profit.
4. Legal considerations: price legislation and anti-monopoly rules.
5. Consumers' response patterns: all things being equal, price will be the prime determinant of consumer choice.