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Question : Case Study:

ABC Electronics sets its prices based on market demand, competitor pricing, and production costs. What pricing strategy does this case exemplify?

 

Option 1: Psychological Pricing

Option 2: Penetration Pricing

Option 3: Skimming Pricing

Option 4: Cost-Plus Pricing


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Cost-Plus Pricing


Solution : The correct answer is (d) Cost-Plus Pricing. 

ABC Electronics sets its prices based on market demand, competitor pricing, and production costs. Cost-Plus Pricing involves calculating the total cost to produce a product or service and then adding a markup (a certain percentage or amount) to cover desired profit. In this scenario, ABC Electronics considers production costs (the "cost" part of cost-plus pricing), along with market demand and competitor pricing, to determine the appropriate pricing for their electronic products.

 

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