A firm must set a price for the first time when it develops a new product, and when it introduces its regular product into a new distribution or geographical area

We will be considering various factors when we will be determining the pricing policies in relation to setting the prices for the first time-

A. We will be determine the prices after consideration of the cultural aspect of the target customers and we will be considering the the preferences of this customer.

B.we will be considering the pricing of our competitors and we will be setting the prices accordingly because when we are offering a similar product to that of competitors we should be offering a price penetration strategy in order to attract a large number of target customers.

C. We will be trying to consider disposable income of the customer because disposable income of the target customer would be helping us in order to set our price as it will be providing us with an idea about how much the consumer can spend.

D. we shall also be considering various macro factors like inflation as well as changing economic scenario which will be helping in setting the prices of products.

E. We shall also be considering the changing technological preferences and cost which are involved in producing that product so we will be trying to maintain a markup on those products.

F. We shall also consider the demand by various customer because demand will be driving the prices up and demand will be the ultimate factor in setting the prices.

G. We shall also consider the rules and regulations and other government intervention that can regularly force the company in changing the price because prices are set after minimum retail price considerations in various countries.