Companies must always examine their pricing ________.
A) based on the supply of the product
B) based on the full cost of producing the product and price to make a profit
C) through the eyes of their customers and then manage costs to produce a profit
D) based on the GAAP cost of producing the product and then add a mark-up

Question

Quizplus · Accepted Answer

It is important for companies to consider their customers' perspective when setting prices, as this will ultimately determine the success or failure of their pricing strategy. Once prices are set to meet customer demand and expectations, companies can then manage their costs to ensure profitability. A and D are incorrect because they do not take into account the customer's perspective, and B is only partially correct as it only considers cost and profit, but not customer demand or expectations.

Companies Must Always Examine Their Pricing ________