Which is an example of a demand-oriented approach to setting an approximate price?

Multiple choice question.

experience curve

loss leader

skimming pricing

target return on sales

1 answer

The best example of a demand-oriented approach to setting an approximate price from the options provided is skimming pricing.

Skimming pricing involves setting a high price initially and then gradually lowering it over time, which is often used when a product is first launched and there is strong demand from early adopters who are willing to pay more. This approach reflects the demand side of pricing strategy.

The other options:

  • Experience curve is more about cost reduction over time as production experience increases.
  • Loss leader refers to pricing a product below cost to attract customers to other products.
  • Target return on sales focuses on achieving a specific profit margin rather than directly on consumer demand.

So, the correct answer is skimming pricing.