Which of the following statements is true of pricing decisions?
A) Market-based pricing starts with a good understanding of customer needs and the benefits that a product offers relative to competitors' products.
B) The business with the lowest price will always offer customers the best economic value.
C) It is possible to implement market-based pricing with low levels of customer and competitor intelligence.
D) Competitors' product-price positioning and company product-price positioning are the two primary determinants in setting a cost-based price.
E) Cost-based pricing takes into account what the customer would be willing to pay for a certain level of product performance.
A
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A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $7,000 and paid $800 for the freight-in. The company sold the whole lot to a supermarket chain for $14,000 on account
Which of the following entries correctly records the sale? A) Accounts Receivable 14,000 Sales Revenue 14,000 Cost of Goods Sold 7,800 Merchandise Inventory 7,800 B) Merchandise Inventory 14,000 Cost of Goods Sold 14,000 C) Cost of Goods Sold 14,000 Sales Revenue 14,000 D) Accounts Receivable 14,000 Sales Revenue 14,000 Cost of Goods Sold 7,000 Merchandise Inventory 7,000
How can a change in customers, product lines, and supply chains affect business processes?
What will be an ideal response?