Which of the Following Statements Is True of Pricing Decisions

question 46

Multiple Choice

Which of the following statements is true of pricing decisions?

• A)Market-based pricing starts with a good understanding of customer needs and the benefits that a product offers relative to competitors' products.
• B)The business with the lowest price will always offer customers the best economic value.
• C)It is possible to implement market-based pricing with low levels of customer and competitor intelligence.
• D)Competitors' product-price positioning and company product-price positioning are the two primary determinants in setting a cost-based price.
• E)Cost-based pricing takes into account what the customer would be willing to pay for a certain level of product performance.

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Definitions:

Initial Cost

The initial expenditure required to acquire an asset or start a project, including the purchase price and setup costs.

Management Decision

A choice made by the leadership of an organization that influences its operations or strategy.

Consumer Demand

The desire of purchasers, consumers, clients, or buyers for a product or service in the marketplace.

Long-Term

Pertains to a period extending generally beyond one year, often related to investments, financial planning, or obligations.