A pricing strategy is
A) a long-term approach to setting prices in a companywide integrated effort.
B) the use of one-time seasonal discounts to reduce inventory.
C) the use of slotting allowances to gain access to distribution channels.
D) a short-term approach to setting prices.
E) associated with competitive threats in the marketplace.

Question

Quizplus · Accepted Answer

A pricing strategy is a long-term approach to setting prices that should be integrated with a company's overall business strategy. It considers factors such as the value of the product, customer demand, competitor prices, and production costs to set prices that maximize profits and maintain a competitive edge. Short-term approaches to pricing, such as one-time discounts, may have benefits in the short run but do not provide a sustainable pricing strategy for the long term. Similarly, slotting allowances are a type of fee paid to retailers to get products on their shelves and do not necessarily reflect a pricing strategy. Competitive threats in the marketplace can influence pricing decisions but are only one factor in a comprehensive pricing strategy.

A Pricing Strategy Is