In the context of supply influences in purchasing decisions,which of the following statements is true of cost-oriented pricing?
A)It yields similar prices and minimizes price competition among industries.
B)It is the least common approach to pricing in practice.
C)It gives excessive consideration to demand factors.
D)It is believed by many practitioners to yield a good price decision.

Question

Quizplus · Accepted Answer

Cost-oriented pricing is a common approach to pricing in practice and is believed by many practitioners to yield a good price decision. This approach considers the costs involved in producing and selling a product or service and adds a markup to determine the selling price. It gives less consideration to demand factors and may result in higher prices than those determined by demand-oriented pricing, but it also minimizes price competition among industries.

In the Context of Supply Influences in Purchasing Decisions,which of the Following