Strategic pricing depends on which of the following assumptions?
A) customer switching costs are high enough to ensure a reasonable retention rate
B) scale based cost drivers are effective
C) both of the above
D) neither of the above

Question

Quizplus · Accepted Answer

Strategic pricing often relies on the assumption that customer switching costs are high, which helps in retaining customers, and that scale-based cost drivers are effective, meaning that increasing production leads to lower costs per unit. Both elements can influence pricing strategies to enhance competitiveness and profitability.

Strategic Pricing Depends on Which of the Following Assumptions