The Pricing Approach That Estimates the Price That Ultimate Consumers

question 101

Multiple Choice

The pricing approach that estimates the price that ultimate consumers would be willing to pay for a product; works backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers is referred to as

• A) cost-benefit pricing.
• B) cost-plus percentage-of-cost pricing.
• C) target pricing.
• D) cost-plus fixed-fee pricing.
• E) product feature pricing.

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Definitions:

Libel

A form of defamation expressed by print, writing, pictures, or signs that injures a person's reputation.

Proximate Cause

The legal principle that determines the primary cause of damage or injury, which must be closely related (both in time and nature) to the harm in a liability lawsuit.

Actual Cause

Also known as "cause in fact," it is a factor or event that is a direct cause of an occurrence or injury.

Foreseeability Test

A legal principle used to determine if the harm caused was reasonably predictable as a consequence of an action or omission, impacting liability.