The three primary bases for developing prices are
A) profit, demand, and competition.
B) supply, demand, and marketing objectives.
C) demand, competition, and cost.
D) markup, cost, and cost-plus.
E) negotiation, periodicity, and randomness.

Question

Quizplus · Accepted Answer

The three primary bases for developing prices are demand (what customers are willing to pay), competition (what other companies are charging), and cost (what it costs to produce and distribute the product or service). This is known as the cost-plus approach, which is widely used by companies to set prices. Profit is a consideration, but it is not one of the primary bases for developing prices. Supply, marketing objectives, markup, negotiation, periodicity, and randomness are not primary bases for developing prices.

The Three Primary Bases for Developing Prices Are