A company building its pricing strategy around the experience curve would be most likely to .
A)price its products high
B)engage in value- added pricing
C)price its products low
D)avoid cost- based pricing
E)engage in break- even pricing

Question

Quizplus · Accepted Answer

A company building its pricing strategy around the experience curve would price its products low. The experience curve implies that a company's unit costs decrease as output increases due to learning, experience and economies of scale. Therefore, the company can set lower prices than its competitors and still enjoy healthy profit margins. This low pricing strategy can also help the company to gain market share and improve its competitiveness over time.

A Company Building Its Pricing Strategy Around the Experience Curve