Question

__________ requires determining the cost of the product and adding the desired profit.

a penetration pricing

b cost oriented pricing

c competition oriented pricing

d demand oriented pricing

Explanation:

To solve this, we analyze each option:

• A. Penetration pricing: Focuses on setting low prices to gain market share, not on cost + profit.
• B. Cost oriented pricing: Involves calculating product cost and adding desired profit (matches the description).
• C. Competition oriented pricing: Based on competitors’ prices, not on own cost/profit.
• D. Demand oriented pricing: Based on customer demand, not cost + profit.

Answer:

B. Cost oriented pricing