Baxter Healthcare,a leading medical products firm,was able to secure a contract for an information management system from Columbia/HCA,a leading health care provider,by guaranteeing the firm several million dollars in savings over an eight-year period.This is an example of ________.
A) market-skimming pricing
B) geographical pricing
C) auction-type pricing
D) going-rate pricing
E) gain-and-risk-sharing pricing

Question

Quizplus · Accepted Answer

This scenario represents gain-and-risk-sharing pricing because Baxter Healthcare is guaranteeing Columbia/HCA several million dollars in savings over an eight-year period. This means that Baxter Healthcare is willing to share the risk with Columbia/HCA and is confident in its ability to deliver cost savings through the information management system.

Baxter Healthcare,a Leading Medical Products Firm,was Able to Secure a Contract