The five Cs of pricing include:

• A. Costs
• B. Channel management
• C. Customer needs
• D. Promotions

Answer: (A)

Pricing decisions revolve around Costs, Customers, Competition, Channel, and Company objectives. Costs is the one that must be considered because a price needs to cover all costs of bringing the product to market and still leave a profit. If costs aren’t covered, the business can’t sustain itself, regardless of demand or other factors. Channel management, customer needs, and promotions are important aspects of marketing, but they’re not the standard pricing considerations themselves. Channel relates to how a product is distributed, customer needs relate to demand and value perception, and promotions are promotional tactics—none of these are the core pricing factor that requires coverage in the price. So Costs is the best answer.