7. Pricing strategies should be determined by profit targets alone. True False

The statement "Pricing strategies should be determined by profit targets alone" is False.

Explanation

Pricing strategies should take into account various factors beyond just profit targets, including:

1. Market Demand: Understanding consumer behavior and demand elasticity.
2. Competition: Analyzing competitors' pricing to remain competitive in the market.
3. Costs: Considering both fixed and variable costs that influence pricing.
4. Brand Positioning: Aligning prices with the brand image and target demographic.
5. Value Perception: Evaluating how customers perceive the value of the product or service.
6. Regulatory Factors: Being aware of legal restrictions on pricing in certain industries.

Thus, effective pricing strategies require a holistic approach that incorporates all these elements.