Which of the following is a common pricing strategy?

Prepare for the NAFTrack Certification Exam with flashcards and multiple choice questions. Each question includes hints and explanations. Boost your confidence and get ready to ace your exam today!

Cost-plus pricing is a common pricing strategy where a fixed percentage or dollar amount is added to the total cost of producing a product to determine its selling price. This method is straightforward and ensures that all production costs are covered while also generating a profit. It's frequently used in industries where the costs can be easily calculated, allowing businesses to maintain pricing consistency and transparency.

Dynamic pricing, loss leader pricing, and freemium pricing are also notable strategies but serve different purposes and contexts. Dynamic pricing adjusts prices based on market demand and other variables, loss leader pricing involves pricing products lower than their cost to attract customers, and freemium pricing offers basic services for free while charging for premium features. While these strategies can be effective in particular situations, cost-plus pricing remains a foundational and widely used method due to its simplicity and effectiveness in covering costs while ensuring profitability.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy