The right way to approach the pricing decision is to start with
A) variable costs.
B) fixed costs.
C) customer needs.
D) competitors' prices.
E) desired profit margins.

Question

Quizplus · Accepted Answer

Starting with customer needs is the best approach because pricing should be based on the value that customers perceive and are willing to pay for a product or service. By understanding customer needs, businesses can set prices that reflect the value proposition of their offering and are competitive in the market. Starting with variable costs, fixed costs, competitors' prices, or desired profit margins can lead to pricing decisions that don't align with customer value and market reality.

The Right Way to Approach the Pricing Decision Is to Start