The Market Approach to Pricing

Multiple Choice

The market approach to pricing:

A) means prices are set to cover direct costs, contribute to indirect, and attain a profit.
B) is the only defensible pricing mechanism for ethical companies to use.
C) implies that prices are set based on what the market will bear.
D) means that prices are adjusted regularly to ensure that the selling organization recoups all its market costs.
E) implies that market analysis is the only technique that should be employed to negotiate prices.