Which function is responsible for estimating product prices based on characteristics?

The function responsible for estimating product prices based on characteristics is grading and valuing. This process involves assessing the features and qualities of a product to determine its worth in the marketplace. By evaluating various characteristics, such as size, quality, brand reputation, and market demand, professionals can assign a price that reflects the product’s value.

Grading and valuing are crucial in ensuring that the pricing aligns with customer expectations and competitive standards, thereby aiding in positioning the product effectively. This analysis often influences marketing strategies and sales tactics, making it foundational for pricing strategies within a business context.

Marketing research, while valuable for understanding consumer behavior and market trends, does not directly focus on evaluating product characteristics for pricing. Sales management is primarily concerned with executing sales strategies and managing sales teams rather than establishing product prices. Product design involves creating and developing products but does not typically address the financial assessment of those products. Thus, grading and valuing stands out as the correct function tied specifically to the process of estimating product prices based on its characteristics.