Question
Which two are profit-oriented approaches to setting a price?
Multiple select question.
target return pricing
customary pricing
target profit pricing
skimming pricing
Multiple select question.
target return pricing
customary pricing
target profit pricing
skimming pricing
Answers
GPT-4o mini
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.
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.