Which pricing method begins by adding a desired profit margin to the product's cost?
Correct answer: C. Cost-plus pricing
- A. Value-based pricing
- B. Competition-based pricing
- C. Cost-plus pricing
- D. Psychological pricing
Explanation
Cost-plus pricing calculates the cost of producing or acquiring an item and adds a predetermined markup. Value-based pricing starts with perceived customer value, whereas competition-based pricing emphasizes rival prices.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Marketing Basics
Marketing begins with identifying customer needs and ends with creating, communicating and delivering value through exchange. Coverage includes market research, consumer behaviour, segmentation, targeting, positioning and the marketing mix of product, price, place and promotion, with marketing distinguished from selling and advertising.
Practise Marketing Basics
29 free Marketing Basics MCQs from Introduction to Business, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Introduction to Business questions like this
Introduction to Business is on this paper prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for it.
More Marketing Basics questions
A manufacturer uses a push strategy when it primarily:
A marketing channel performs the function of:
Which of the following is an example of a convenience product?
A product's unique benefit that competitors do not offer easily is called its:
Which research method gathers primary data by asking selected people a standard set of questions?
In the product life cycle, the maturity stage is generally marked by: