A pricing experiment:
A) is a method of determining the most profitable price for a product
B) cannot be performed if the retailer uses POS terminals
C) is a less accurate method of determining buyer response to price changes than a consumer panel
D) is useful for obtaining data for a cost-oriented pricing strategy
E) is described by all of these

Question

Quizplus · Accepted Answer

A pricing experiment is a method of determining the most profitable price for a product by testing different price points and analyzing the resulting sales data. It is a useful tool for businesses to optimize their pricing strategy for maximum profitability. Option B is incorrect because a pricing experiment can still be performed with POS terminals. Option C is incorrect because a pricing experiment can be just as effective as a consumer panel for testing buyer response to price changes. Option D is incorrect because a pricing experiment is not typically geared towards cost-oriented pricing.

A Pricing Experiment