The key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point.Which of the following is one of four common approaches to selecting an approximate price level?
A) cost-oriented
B) cause-oriented
C) revenue-oriented
D) stakeholder-oriented
E) distribution-oriented

Question

Quizplus · Accepted Answer

The cost-oriented approach is one of the four common approaches to selecting an approximate price level. This approach involves analyzing the costs of producing or acquiring the product and adding a markup to determine the final price. Other common approaches include revenue-oriented (where prices are set based on the company's revenue goals), competitor-oriented (where prices are set based on the prices of similar products offered by competitors), and customer-oriented (where prices are set based on customer perceptions of value). However, the cost-oriented approach is often considered the most reliable and accurate approach for setting prices, as it takes into account the actual costs of producing or acquiring the product.

The Key to Setting a Final Price for a Product