Firms Using A(n)____________ Pricing Method Set Their Prices Relative to What

question 30

Multiple Choice

Firms using a(n) ____________ pricing method set their prices relative to what other firms are charging.

• A) improvement value
• B) value-based
• C) competitor-based
• D) reference-based
• E) cost-based

---

Definitions:

Forecast Error

The difference between the actual demand and the forecasted demand, indicating the accuracy of forecasts.

Bias

A tendency to lean in a certain direction, either in favor of or against a particular thing, person, or group compared with another, often in a way considered to be unfair.

Forecast Method

Techniques used to predict future aspects of a business or operation, such as sales, trends, or consumer demand, based on historical and current data.

Exponential Smoothing

A time series forecasting method for univariate data that involves using weighted averages of past observations, with the weights decreasing exponentially as the observations get older.