Question: What is a potential drawback of using a cost - plus pricing strategy for a new venture? Guarantees consistent profit margins regardless of demand. Eliminates

What is a potential drawback of using a cost-plus pricing strategy for a new venture?
Guarantees consistent profit margins regardless of demand.
Eliminates the need for market research on customer preferences.
Might result in prices that are misaligned with the perceived value of the product or service.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!