Hector is opening an appliance store. He has estimated a monthly profit goal based on his anticipated expenses and earning goals and uses it to set product prices. Hector is implementing a ________ pricing strategy.
A) penetration
B) price skimming
C) target return on investment (ROI)
D) competitor-based
E) value

Question

Quizplus · Accepted Answer

Hector is using a target return on investment (ROI) pricing strategy because he has set prices based on his desired profit goal. He has calculated his anticipated expenses and earning goals and has set prices accordingly to achieve his desired ROI.

Hector Is Opening an Appliance Store