A paving contractor wants to work on road construction contracts administered and paid for by the state government. The contractor submits a sealed proposal to the state department of transportation for each construction job. The proposal contains a description of how the contractor will fulfill the specifications for the job at a specified price. The contractor is engaging in:
A) Odd-even pricing.
B) Prestige pricing.
C) Leader pricing.
D) Bid pricing.
E) Price lining.

Question

Quizplus · Accepted Answer

The contractor is engaging in bid pricing, which involves submitting a proposal or bid for a construction job at a specified price. This is a common pricing strategy for contractors working on government projects. Odd-even pricing involves setting prices at even or odd amounts, prestige pricing involves setting high prices to convey luxury or exclusivity, leader pricing involves setting low prices to attract customers, and price lining involves offering different products at different price points within a product line. None of these strategies accurately describe the contractor's approach.

A Paving Contractor Wants to Work on Road Construction Contracts