At any cost?

Factors affecting pricing decision

When setting price, marketers must take into consideration several factors For instance, product pricing may depend heavily on the productivity of a manufacturing facility

pricing decision of hero company

The marketer knows that increasing productivity can reduce the cost of producing each product and thus allow the marketer to potentially lower the product’s price. But increasing productivity may require major changes at the manufacturing facility that will take time since hero is old company and producing a large no of bicycles she uses the above strategy