CLEP Marketing Practice Exam 2025 – All-in-One Guide to Achieve Top Scores!

The term "flexible-price policy" accurately describes a pricing strategy in which the same product is sold at varying prices to different customers or in different scenarios. This approach allows a company to maximize its revenue by adjusting prices based on factors such as demand, customer segments, or negotiation outcomes. It accommodates market conditions and customer willingness to pay, thus providing businesses with the flexibility to capture more sales opportunities.

This pricing strategy is often seen in industries where competition is high and consumer behavior can vary widely, such as travel, hospitality, or personalized services. In these cases, companies can adapt pricing in real time or offer discounts and promotions tailored to specific buyers, enhancing perceived value and driving sales.

Competitive pricing refers to setting prices based on competitors’ pricing strategies, while dynamic pricing is characterized by real-time adjustments based on market demand, which may not involve offering different prices for the same product in a consistent way. Cost-plus pricing involves determining prices based on the cost of producing a product plus a markup, which does not inherently include variability in pricing for the same item.