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Which of the following is not a pricing method ?

  • A.Differentiated pricing
  • B.Cost based pricing
  • C.Affordability based pricing
  • D.Leverage pricing

Answer: D

The key gives Leverage pricing.

Cost-based pricing sets price by adding a margin to cost, differentiated pricing charges different prices to different customer segments or for different times and places, and affordability-based pricing sets price at a level the target customers can pay, as in many products for the Indian mass market.

'Leverage pricing' is not a recognised pricing method; leverage is a term of corporate finance, which is why it is the answer.

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