Which of the following statements about cost-oriented approaches is true?
A)These methods focus on the demand side of the pricing problem and involve stimulating demand and decreasing revenue.
B)These methods focus on the supply side of the pricing problem and involve considerations of production and marketing expenses.
C)Target return on investment is an example of a cost-based method.
D)Experience curve pricing is simple to use because costs predictably decrease by 25 percent with each doubling of production.

Question

Quizplus · Accepted Answer

Cost-oriented approaches focus on the supply side of the pricing problem and involve considerations of production and marketing expenses. Target return on investment is an example of a cost-based method. However, experience curve pricing is not necessarily simple to use and costs do not always decrease by 25 percent with each doubling of production.

Which of the Following Statements About Cost-Oriented Approaches Is True