If a manufacturer wishes to use a customary pricing strategy and a situation arises where raw material prices have increased, the typical course of action by the manufacturer would be
A) increase the price of the product
B) alter the product size or product ingredients rather than alter the price
C) offset the price increase in raw materials by cutting costs in other areas
D) both a and b

Question

Quizplus · Accepted Answer

Customary pricing strategy involves maintaining a stable price for a product, so manufacturers often alter the product size or ingredients to manage increased costs without changing the price.

If a Manufacturer Wishes to Use a Customary Pricing Strategy