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Question
______ is the most common method used for pricing.
Options
Cost plus pricing
Target pricing
Break-even-pricing
Marginal cost
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Solution
Cost plus pricing is the most common method used for pricing.
Explanation:
Cost-plus pricing is a straightforward and widely used pricing method in which a fixed percentage (markup) is added to the cost of producing a product to determine its selling price. This approach ensures that all costs are covered and a profit margin is achieved. It's commonly used because of its simplicity and the ease with which it can be applied across various products and industries.
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RELATED QUESTIONS
State any two advantages of cost-plus pricing strategy.
Explain the below mentioned pricing strategy:
Penetrating pricing strategy
It is also known as 'going rate pricing' or competition based pricing.
Introducing a product at low price and increasing the price once the brand succeeds is known as ______ pricing.
The main aim of penetrating pricing is to ______.
Parity pricing is not relevant under the present marketing conditions. Justify either for or against by giving two reasons.
Give two conditions under which parity pricing is desirable.
"Competition based pricing is ideal for non-branded products." Comment.
State two disadvantages of Cost plus pricing policy.
Discuss the pros of Penetrating Pricing Policy.
