Question

Which of the following represents a starting point for​ long-run pricing​ decisions? A. Opportunistic​ pricing, which is based on demand and competition. Prices are decreased when demand is weak and competition is strong and increased when demand is strong and competition is weak. B. ​Cost-based pricing, which​ asks, "What does it cost us to make this product​ and, hence, what price should we charge that will recoup our costs and achieve a target return on​ investment?" C. ​Market-based pricing, an important form of which is target pricing. The​ market-based approach​ asks, "Given what our customers want and how our competitors will react to what we​ do, what price should we​ charge?" D. Both B and C are correct.

Answer 1

​Market-based pricing, an important form of which is target pricing. The​ market-based approach​ asks, "Given what our customers want and how our competitors will react to what we​ do, what price should we​ charge (C)

Step-by-step explanation:

Option A- False . This is a short-run pricing approach and it is not sustainable

Option B- False. This is an internally focused approach to pricing because no consideration is given to the price customers are willing to buy and competitors' price.

Option C- True. This is a long-run pricing approach because it is externally focused and give consideration to what is obtainable in the market.

Option D- False.