Jersey's Smoothie Bar has decided to set its pricing structure based on an annual percentage of the amount earned as a result of financial investment as a quantifiable means to gauge the success of their pricing.This pricing structure is known as
A) target return on investment pricing.
B) market-share pricing.
C) status-quo pricing.
D) survival pricing.

Question

Quizplus · Accepted Answer

Jersey's Smoothie Bar is using target return on investment pricing, which sets prices based on achieving a specific ROI goal. This method uses financial investment as a benchmark to determine pricing rather than competition or production costs.

Jersey's Smoothie Bar Has Decided to Set Its Pricing Structure