The strategy of charging prices based on consumer demand rather than cost or a predetermined profit margin represents
A) competition-based pricing.
B) cost-based pricing.
C) target orientation.
D) demand-oriented pricing.

Question

Quizplus · Accepted Answer

Demand-oriented pricing is the strategy of setting prices based on consumer demand. This requires researching and analyzing the market to determine what price the consumer is willing to pay for a product or service. It allows businesses to maximize their profits by setting prices that reflect the value of the product or service to the consumer, rather than simply marking up the cost or setting a predetermined profit margin.

The Strategy of Charging Prices Based on Consumer Demand Rather