"Demand-backward" pricing:
A) starts with an acceptable final consumer price and works backward to what producers can charge.
B) ignores demand estimates.
C) is only sensible when the channel captain is a large retailer.
D) is an average-cost pricing approach.
E) None of these alternatives is correct.

Question

Quizplus · Accepted Answer

Demand-backward pricing starts with an acceptable final consumer price and works backward to what producers can charge. This approach takes into account demand estimates and aims to find a price point that aligns with consumer demand and producer profitability. It can be used by any channel captain, not just large retailers, and is not necessarily an average-cost pricing approach.

"Demand-Backward" Pricing