In regard to industrial marketing, the following example best exemplifies what type of pricing? "The seller determines the price (or a series of prices) for a given product, and the customer pays that specified price."
A. Bid pricing
B. Negotiated pricing
C. Administered pricing
D. Retail pricing
E. Economic pricing
Answer: (C) The example shows administered pricing, so (C) is the correct choice. In administered pricing, the seller sets the price and the buyer pays that listed price. If a price is determined through the use of sealed or open bids, it is called bid pricing. Thus, (A) is incorrect. In negotiated pricing, there is a stated list price; however, discounting is used to entice purchases. (B) is therefore incorrect. This is not a retail situation, so retail pricing is an incorrect answer (D). In economic pricing (E), the business environment has more of an impact on the price set than the seller, so this is a wrong choice.