Jerszy'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

​Jerszy'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.

Quizplus · Accepted Answer

Target return on investment pricing sets prices based on the desired return on investment for the business, which aligns with Jerszy's Smoothie Bar's decision to base pricing on the amount earned from financial investment. Market-share pricing sets prices based on the company's desire to capture a certain percentage of the market, status-quo pricing maintains existing prices regardless of changes in cost or demand, and survival pricing sets prices at the bare minimum needed to cover costs and stay in business.

​Jerszy's Smoothie Bar Has Decided to Set Its Pricing Structure

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