Read the overview and complete the activities that follow. Assume that you are the new manager of Red Wolf Hardware. The owner of the business is concerned that the company is not making enough profit from selling hammers and has asked you to start from scratch in how you price the hammers. It is important that you go through the correct steps in order to increase the likelihood you will find the optimal price point for your hammers to drive profits for the company. CONCEPT REVIEW: Many factors influence how a firm sets prices. A firm's various stakeholders may voice a preference for higher or lower prices depending on their point of view. Marketing executives in search of substantial profits typicall want high prices across the products they sell, while customers and salespeople often want low prices to increase the perceived customer value and ultimately the number of units sold. Thoughtful consideration of the impact on all stakeholders at each step in the price-setting process increases the likelihood that the final price captures value for the firm and delivers value to the customer. Click And Drag Place the steps of the price-setting process in the correct order. Define the pricing objectives Monitor and evaluate the effectiveness of the price Choose a price Analyze the competitive price environment Determine the costs Evaluate demand Reset Click And Drag Match each of your decisions to the appropriate step in the price setting process. Determine the costs You review marketing research that shows consumers are not price sensitive when buying hammers. Monitor and evaluate the -You check online to see what the other hardware stores in town are charging for hammers. effectiveness of the price Analyze the competitive price environment You utilize reference prices to determine that Red Wolf customers should pay $11 for a standard hammer. You determine that your initial price-setting process has resulted in setting a price that is still too low and you develop strategies for raising the price. Evaluate demand You develop a breakeven analysis based on the costs to sell the hammers. Choose a price Define the pricing objectives You decide that Red Wolf Hardware needs to increase the volume of hammers sold. Reset