Which of the Following Statements Regarding Cost-Oriented Approaches Is Most

question 138

Multiple Choice

Which of the following statements regarding cost-oriented approaches is most accurate?

• A)These methods focus on the demand side of the pricing problem; they involve stimulating demand and decreasing revenue.
• B)These methods focus on the cost side of the pricing problem; they involve considerations of production and marketing expenses.
• C)Target return on investment is an example of a cost-oriented method.
• D)Experience curve pricing is simple to use because costs predictably decrease by 25 percent with each doubling of production.
• E)Cost-oriented approaches are subcategories of competition-oriented methods so revenues are a critical factor.

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Definitions:

Satisfied Need

A psychological or physiological requirement that has been successfully fulfilled, leading to a state of contentment or satisfaction.

Psychological Needs

Essential components for mental well-being, including feeling loved, secure, and respected, that influence behaviors and motivation.

Social Values

Social values are the principles and beliefs held by a society that shape behaviors, guide ethical decisions, and form the foundation of cultural norms.

Stage Fright

Anxiety or fear experienced before or during a public performance or presentation.