World-class organizations operating in competitive markets are more likely to take which one of the following approaches toward pricing?
A)Begin with cost data as given and determine price by adding a reasonable mark-up.
B)Determine price based on the amount management believes customers are willing to pay.
C)Employ a cost-based approach to pricing.
D)Determine the price that keeps the facilities fully utilized.

Question

Quizplus · Accepted Answer

World-class organizations operating in competitive markets are more likely to use a customer-based approach, identifying the amount that customers are willing to pay, which allows them to capture maximum value while remaining competitive. This approach considers customer value in the pricing decision, rather than just the cost to produce or provide the product or service.

World-Class Organizations Operating in Competitive Markets Are More Likely to Take