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Question
markup pricing is a method of
a penetration pricing.
b demand oriented pricing.
c competition oriented pricing.
d cost oriented pricing.
Markup pricing involves adding a markup (percentage of cost) to the cost of a product to determine its price. This is a key characteristic of cost - oriented pricing, where the price is set based on the cost of production (including costs like manufacturing, overheads) and then a markup is added to cover profit and other expenses. Penetration pricing is about setting low prices to enter a market, demand - oriented pricing focuses on customer demand and willingness to pay, and competition - oriented pricing is about matching or beating competitors' prices. So markup pricing is a method of cost - oriented pricing.
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D. cost oriented pricing.