Most consumers expect a litre of milk to cost anywhere between $1-$3 dollars depending on if it is organic or not.Knowing this consumer expectation,a new dairy will probably charge consumers within this price range for their milk.This new dairy is engaging in:
A)Standard markup pricing
B)Cost-plus-percentage-of-cost pricing
C)Customary pricing
D)Experience curve pricing

Question

Quizplus · Accepted Answer

The new dairy is engaging in customary pricing as they are following the expected price range that consumers have for a litre of milk. They are not basing their pricing on the cost of production, but rather on what is customary in the market.

Most Consumers Expect a Litre of Milk to Cost Anywhere