Which two are profit-oriented approaches to setting a price?

Question

Multiple select question.

target return pricing

customary pricing

target profit pricing

skimming pricing

Answer 1

The two profit-oriented approaches to setting a price among the options provided are:

1. Target return pricing - This approach focuses on setting a price to achieve a specific return on investment (ROI).

2. Target profit pricing - This method sets prices based on a desired profit level, aiming to generate a specific amount of profit given the sales volume.

Skimming pricing is a strategy used to maximize profits by setting high prices initially and lowering them over time, but it is not explicitly a "profit-oriented" approach in the same sense as target return and target profit pricing. Customary pricing refers to pricing established by tradition or expected norms, which is more about maintaining market standards rather than explicitly focusing on profit.