The Market Approach to Pricing

question 17

Multiple Choice

The market approach to pricing:

• A) means prices are set to cover direct costs, contribute to indirect, and attain a profit.
• B) is the only defensible pricing mechanism for ethical companies to use.
• C) implies that prices are set based on what the market will bear.
• D) means that prices are adjusted regularly to ensure that the selling organization recoups all its market costs.
• E) implies that market analysis is the only technique that should be employed to negotiate prices.