If General Motors determines that it wants to sell 200,000 Chevrolet Acadias and sets the price at $29,500 because it knows that at that price it will reach that goal, the firm would be using a ____ pricing method.
A) cost-plus
B) competition-based
C) psychological
D) comparison
E) demand-based

Question

Quizplus · Accepted Answer

The given scenario suggests that General Motors is using a demand-based pricing method, as it is setting the price based on the desired sales volume. This is consistent with the features of a demand-oriented pricing strategy, where prices are set based on the demand for the product or the quantity that the company wants to sell. The other pricing methods listed may involve factors beyond just the desired sales volume, such as production costs or competitor prices.

If General Motors Determines That It Wants to Sell 200,000