In _____, marketers determine prices based on what consumers are willing to pay and then subtract desired margins to yield target costs.

Question

Quizplus · Accepted Answer

In demand-based pricing, marketers determine prices based on what consumers are willing to pay, taking into account supply and demand, competition, and other factors. This approach allows for greater flexibility and responsiveness to market conditions, as prices can be adjusted based on changes in demand or other factors. Cost-based pricing (A) involves determining prices based on the cost of producing and distributing a product or service, while gap-determined pricing (C) refers to filling price gaps in the market based on the differences between the prices of similar products or services. Fixed-margin pricing (D) involves setting a specific markup or margin on top of the cost of production, which may not take into account the actual value or demand for the product or service.

In _____, Marketers Determine Prices Based on What Consumers Are