Which of the following describes an advantage associated with cost-oriented approaches to pricing?
A) They provide a direct correlation of price to what people will be willing to pay for the product.
B) They clearly and adequately reflect competition.
C) They give adequate consideration to both supply and demand factors.
D) They are very simple to use and generally yield a good price decision.

Question

Quizplus · Accepted Answer

Cost-oriented approaches to pricing have the advantage of simplicity and many practitioners believe that they generally yield a good price decision. However, such approaches have been criticized for two basic reasons. First, cost approaches give little or no consideration to demand factors. Second, cost approaches fail to reflect competition adequately.

Which of the Following Describes an Advantage Associated with Cost-Oriented