Nick is planning on setting up a small-scale guitar manufacturing company.Nick isn't well versed in economics,so he doesn't understand the concept of supply and demand very well.What pricing strategy must Nick adopt?
A)Skimming pricing
B)Prestige pricing
C)Psychological pricing
D)Cost-based pricing

Question

Quizplus · Accepted Answer

Cost-based pricing is the most straightforward strategy for Nick to adopt, especially since he is not well versed in economics. This strategy involves setting the price of his guitars based on the cost of production plus a markup for profit. It does not require an in-depth understanding of market demand or consumer psychology, making it suitable for someone new to business like Nick.

Nick Is Planning on Setting Up a Small-Scale Guitar Manufacturing