Question

In determining the price for his company's new photo printer, Raymond is assessing the total cost of owning his printer as compared to alternative products available in the market. Raymond is using _______ pricing.

Answer 1

Raymond is using cost of ownership pricing.

Step-by-step explanation:

When a customer uses the cost of ownership pricing method in determining what product or service to buy, he/she will estimate the total cost of ownership which includes the direct and indirect costs of purchasing and operating a product or service. Sometimes even environmental costs and other social costs can be accounted for.

Then the buyer will decide which product or service to purchase depending on which one has the smallest total cost of ownership.

Answer 2

Cost of ownership

Step-by-step explanation:

The cost ownership includes other elements of cost associated with owning a product eg operating cost.

A common example that comes to mind is the ownership of a car, analysing the total cost of ownership would include cost of fueling and maintaining the car as compared to buying a new brand of car.

It takes someone with foresight to see the bigger picture and look at what the product's real value and cost is over time.