Question

Two forms of demand-based pricing are ________.

A) price bundling and captive pricing
B) price skimming and penetration pricing
C) fixed pricing and variable pricing
D) target costing and yield management pricing
E) price leadership and everyday low pricing

Answer 1

Demand-based pricing strategies include price bundling and captive pricing, both of which take advantage of consumer demand patterns and perceived value to set prices.

Step-by-step explanation:

The two forms of demand-based pricing mentioned in the question are price bundling and captive pricing. This approach is centered on consumer demand and perceived value. Price bundling involves combining multiple products or services into a single package at a lower price than they would cost individually. Captive pricing involves setting a low price for one product, while ensuring that consumers will have to buy expensive ancillary products or services to fully use the main product.