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

Question

Quizplus · Accepted Answer

Customary pricing refers to setting a price based on tradition or standard industry practices, rather than on cost or demand. This type of pricing is often used in industries where pricing is standardized, such as in the case of commodities like coffee or steel. In these industries, prices are often set by market forces rather than by individual companies, and firms must conform to the prevailing industry pricing standards in order to remain competitive.

Setting a Price That Is Dictated by Tradition,a Standardized Channel