O The cost of marking a product and the desire profit margin are the two primary determinants in a value- based price O Value-based pricing takes customer needs into account, but fails to consider customers' price sensitivity O Competition-based pricing starts with a good understanding of customer needs and benefits that a product offers relative to competitors' products O The business with the lowest price offers customers the best economic value
O The cost of marking a product and the desire profit margin are the two primary determinants in a value- based price O Value-based pricing takes customer needs into account, but fails to consider customers' price sensitivity O Competition-based pricing starts with a good understanding of customer needs and benefits that a product offers relative to competitors' products O The business with the lowest price offers customers the best economic value
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 8DQ: Although the cost-plus approach to product pricing may be used by management as a general guideline,...
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Do not copy from other sources if i will find plagiarism in your answer i will give you down vote. Explain your answer.
![Which of the following statements about pricing strategy is most accurate?
O The cost of marking a product and the desire profit margin are the two primary determinants in a value-
based price
O Value-based pricing takes customer needs into account, but fails to consider customers' price sensitivity
O Competition-based pricing starts with a good understanding of customer needs and benefits that a product
offers relative to competitors' products
O The business with the lowest price offers customers the best economic value](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F069fa7c0-0855-4633-87f9-a03fa4293e1a%2Fceaa3ac9-94b8-4f06-b9de-60228a9616bc%2Fmg3ww2c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which of the following statements about pricing strategy is most accurate?
O The cost of marking a product and the desire profit margin are the two primary determinants in a value-
based price
O Value-based pricing takes customer needs into account, but fails to consider customers' price sensitivity
O Competition-based pricing starts with a good understanding of customer needs and benefits that a product
offers relative to competitors' products
O The business with the lowest price offers customers the best economic value
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