DECA Business Management and Administration Exam Practice – Complete Prep Guide

The strategy that involves changing the pricing of a product to increase demand is identified as a pricing strategy. This approach focuses on adjusting prices to attract more customers, enhance sales volume, and ultimately drive revenue growth. Different pricing strategies can include discounting, psychological pricing, or dynamic pricing, all of which aim to find a balance that encourages more purchases while maintaining profitability.

By implementing a well-thought-out pricing strategy, businesses can respond effectively to changes in market conditions, competitive pressures, and consumer behavior, making it a crucial element in demand generation. In contrast, profit maximization centers on setting prices to achieve the highest possible profit rather than solely focusing on increasing demand, while cost leadership emphasizes becoming the lowest-cost producer. Market segmentation involves dividing a broader market into smaller segments to target specific audiences more effectively, which may also intersect with pricing but does not explicitly define changing prices as its main focus.