Application Question

Management Trainee

You are to assume the role of management trainee for a unisex clothing store that specialises

in jeans and trendy clothing. The stores buyer (Judge) wants your opinion about whether or

not to carry a new brand of jeans that would sell for K10 more than your most expensive

brand. Even at the K80 retail price, you think they will sell.

1. Explain the nature and scope of the pricing function

2. Explain factors affecting pricing decisions

3. Identify strategies for pricing new products

4. Explain the nature of sales forecasts