Adding a standard markup to the total cost of a product to determine its selling price is termed:
ACost-Plus Pricing (Markup Pricing)
BDynamic Pricing
CPsychological Pricing
DValue-Based Pricing
Explanation
* Cost-Plus Pricing involves calculating total unit costs and adding a predetermined standard dollar or percentage markup.
* Value-based considers customer willingness; Dynamic adjusts in real-time; Psychological influences price perceptions.
* Markup pricing remains popular because cost estimates are simpler to calculate than consumer demand curves.
Exam Relevance
- Topic: Pricing Strategies
- Subtopic: Cost-Based Pricing

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