In _____, marketers determine prices based on what consumers are willing to pay and then subtract their desired margins to yield target costs.
A) cost-based pricing
B) demand-based pricing
C) gap-determined pricing
D) fixed-margin pricing

Question

Quizplus · Accepted Answer

Demand-based pricing involves setting prices according to what consumers are willing to pay, and then working backwards to determine the target costs by subtracting the desired profit margins.

In _____, Marketers Determine Prices Based on What Consumers Are