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.

---

Definitions:

External Factors

Elements outside an organization or individual that can affect their performance or decision-making process.

Stereotyping

Assigning generalized attributes to individuals based on their membership in a particular group, without acknowledging individual differences.

Projection

A psychological defense mechanism where individuals attribute their own unacceptable thoughts, feelings, or motives to someone else.

Expectations

Beliefs or anticipation about the way events, behaviors, or processes should unfold.