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According to Lysons and Farrington, two authors recommended by CIPS, which of the following are cost-based pricing models, as opposed to market-driven pricing models? Choose two.
Suggested Answer: C, D
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Both penetration pricing and promotional pricing begin with the market price. Marginal pricing and rate of return pricing both look at the costs of doing something, and base their calculations on cost. These last two are therefore cost-based approaches to pricing.
29 comments · newest first
BU
Buck
7 months ago
I agree with Alex. Marginal and rate of return are clear choices.
DU
Dusti
8 months ago
C and D make sense. They relate to costs directly.
AR
Ariel
8 months ago
I feel unsure about this one. Maybe A and B?
CA
Casie
8 months ago
Yup, those two are definitely cost-based!
JU
Justine
9 months ago
Wait, are we sure about that?
WH
Whitney
9 months ago
I thought penetration pricing was cost-based too?
MI
Micaela
9 months ago
Totally agree with that!
JU
Juan
9 months ago
C and D, easy peasy. Gotta love those cost-based models!
HA
Haydee
9 months ago
C and D, no doubt. Penetration and promotional pricing are more market-driven.
SH
Shawnda
9 months ago
Hmm, I'm going with C and D. Lysons and Farrington know their stuff!
AL
Aliza
10 months ago
Marginal pricing and rate of return pricing, definitely.
AL
Alesia
10 months ago
C and D seem like the correct cost-based pricing models.
EM
Emilio
10 months ago
I feel like promotional pricing might also be market-driven, but I can't recall the specifics of the definitions.
MA
Maurine
10 months ago
I practiced a similar question where we had to identify pricing strategies, and I think penetration pricing is more market-driven, right?
RI
Rima
10 months ago
I remember rate of return pricing being discussed as a cost-based model, but I’m a bit confused about how it compares to market-driven models.
CE
Cecilia
10 months ago
I think it's C and D. Cost-based models focus on expenses.
KR
Kris
11 months ago
C) Marginal pricing and D) Rate of return pricing are cost-based.
RE
Renay
11 months ago
Haha, I bet the exam writers are trying to trick us with those other options. C and D for the win!
LE
Leonida
11 months ago
I think marginal pricing is definitely one of the cost-based models, but I'm not sure about the second one.
RE
Regenia
12 months ago
Hmm, I'm a little unsure about this one. I remember the concepts, but I want to make sure I apply them correctly. I'll review the key characteristics of each pricing model before the exam.
JA
Jaime
12 months ago
I'm confident I know the difference between these pricing models. Penetration pricing and rate of return pricing are definitely cost-based, so those are my two answers.
JE
Jennie
1 year ago
This question seems straightforward, but I want to make sure I understand the difference between cost-based and market-driven pricing. I'll focus on that in my review before the exam.
FR
Freeman
1 year ago
Okay, I think I've got this. Penetration pricing and rate of return pricing are cost-based, while promotional pricing and marginal pricing are market-driven. Let me double-check that.
DO
Donette
1 year ago
Hmm, I remember Lysons and Farrington discussing pricing models, but I'm a bit fuzzy on the details. I'll need to review my notes carefully.
DO
Doug
7 months ago
Let's double-check the notes to be sure!
AM
Amber
7 months ago
I remember penetration pricing being more market-driven.
VI
Viki
7 months ago
Yeah, and maybe rate of return pricing too?
CH
Chantell
11 months ago
I think marginal pricing is one of them.
LA
Laine
11 months ago
Promotional pricing sounds like a short-term strategy.