Of the two basic approaches to setting prices, Blank______ is the most common.Multiple choice question.cost-orienteddemand-oriented

The correct answer to the question is cost-oriented.

Explanation

In pricing strategies, there are primarily two approaches: cost-oriented pricing and demand-oriented pricing. Cost-oriented pricing, often referred to as cost-plus pricing, involves determining the cost of producing a product and then adding a markup percentage to that cost to arrive at the selling price. This method is widely used due to its simplicity and predictability, allowing businesses to ensure that all costs are covered while achieving a desired profit margin.

On the other hand, demand-oriented pricing takes into account the consumer demand and perceived value rather than just the cost. While this method can optimize pricing based on market conditions and customer preferences, it is often more complex and requires comprehensive market research and understanding of consumer behavior.

In summary, cost-oriented pricing is more straightforward and commonly employed, particularly among manufacturers and retailers who need to ensure that their basic costs are accounted for in the pricing structure.