A company building its pricing strategy around the experience curve would be most likely to ________.
A) price its products low
B) price its products high
C) engage in break-even pricing
D) avoid cost-based pricing
E) engage in value-added pricing

Question

Quizplus · Accepted Answer

A company that is building its pricing strategy around the experience curve aims to reduce costs through increased production efficiency and economies of scale. As the company produces more units, the cost per unit will decrease, and the company can pass on those savings to customers by pricing its products low. This pricing strategy is also known as cost leadership.

A Company Building Its Pricing Strategy Around the Experience Curve