General Motors prices its automobiles to achieve a 15 to 20 per cent profit on its investment.This approach is called ________.
A)value-based pricing
B)going-rate pricing
C)cost-plus pricing
D)low-price image
E)target-return pricing

Question

Quizplus · Accepted Answer

This approach is called target-return pricing, where a company sets the price of its products to achieve a target return on investment (ROI). General Motors aiming for a 15 to 20 percent profit on its investment is an example of setting prices to meet a specific return target.

General Motors Prices Its Automobiles to Achieve a 15 to 20