MARKETING: AN INTRODUCTION
16th Edition
ISBN: 9781323388709
Author: Armstrong
Publisher: PEARSON C
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Question
Chapter 9, Problem 9.2DQ
Summary Introduction
To Determine: The cost-plus pricing method and the reasons why marketers use it even it is not the best approach for price setting.
Cost plus pricing:
The essentials of cost plus pricing procedure is that it sets costs for goods and services, which takes care of the expense of manufacturing and it gives adequate profit margin to the firm to achieve its target return. The organization chooses the limitations that it needs from the item, and after that includes the margin on the top of the cost to go to an trading value.
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