If a service firm sets a specific price for each possible job-rather than setting a price which applies for all potential customers-it is most likely using:
A) product-bundle pricing.
B) a one-price policy.
C) price lining.
D) average-cost pricing.
E) bid pricing.

Question

Quizplus · Accepted Answer

The pricing strategy described in the question, where a service firm sets a specific price for each possible job, is known as bid pricing. This is often used in industries such as construction or consulting, where the nature of the work can vary significantly from project to project, and therefore a standard price is not practical. With bid pricing, customers submit a request for proposal (RFP), and the firm will quote a price based on the specific requirements of the job.

If a Service Firm Sets a Specific Price for Each