The Strategy of First Determining What the Market Is Willing

question 272

Multiple Choice

The strategy of first determining what the market is willing to pay, then subtracting a desired profit margin to determine a desired cost of production is called

• A) cost-based pricing.
• B) target costing.
• C) penetration pricing.
• D) skimming pricing.

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Definitions:

Deceptive Advertising

Marketing strategies that trick or misinform customers regarding the qualities, features, or advantages of a product or service.

Cease-and-Desist Order

A legal injunction ordering an individual or organization to stop engaging in a specified activity or behavior.

Federal Trade Commission

A U.S. federal agency responsible for protecting consumers and promoting competition by preventing anticompetitive, deceptive, and unfair business practices.

Reasonable Basis

A logical, fact-based foundation for a belief, action, or decision, indicating that due diligence has been exercised.