In _____, marketers determine prices based on what consumers are willing to pay and then subtract desired margins to yield target costs.
A)cost-based pricing
B)demand-based pricing
C)gap-determined pricing
D)fixed-margin pricing

Question

Quizplus · Accepted Answer

This is the definition of demand-based pricing, where prices are set based on what consumers are willing to pay, rather than starting with the cost of production. The desired margin is then subtracted from this price to determine the target cost.

In _____, Marketers Determine Prices Based on What Consumers Are