Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors is referred to a _________.
A)cost-plus percentage-of-cost pricing
B)customary pricing
C)standard markup pricing
D)experience curve pricing
E)target profit pricing

Question

Quizplus · Accepted Answer

Customary pricing refers to the setting of a price based on traditional or competitive factors, rather than a specific cost or profit goal. This can include pricing that is based on industry standards or expectations, or pricing that is set to match competitors in the market. Cost-plus percentage-of-cost pricing (A), standard markup pricing (C), experience curve pricing (D), and target profit pricing (E) all involve setting a price based on specific cost or profit goals.

Setting a Price That Is Dictated by Tradition, a Standardized