Question

What are two profit-oriented approaches to setting a price?

A) Cost-plus pricing and target pricing
B) Penetration pricing and skimming pricing
C) Dynamic pricing and psychological pricing
D) Bundle pricing and discount pricing

Answer 1

Cost-plus pricing and target pricing are two profit-oriented approaches to setting a price.

Step-by-step explanation:

Two profit-oriented approaches to setting a price are:

A) Cost-plus pricing: This method involves calculating the total cost of producing a product and then adding a markup to cover desired profit.

B) Target pricing: With this approach, a company starts by determining the price that customers are willing to pay, and then works backwards to establish a target cost for the product.