Which pricing method is designed to adjust to different market conditions?

The graduated recovery method is specifically designed to adjust to different market conditions by applying tiered pricing strategies based on factors such as demand, customer segments, or the timing of the purchase. This approach allows organizations to maximize their revenues by charging different prices for the same product or service depending on the level of demand and other market dynamics.

For instance, during a peak season, higher prices can be implemented to capitalize on increased demand, while during off-peak times, prices may decrease to stimulate sales. This flexibility makes the graduated recovery method particularly effective in environments where market conditions are constantly changing.

In contrast, fixed pricing establishes a set price that does not change with market fluctuations, while cost-plus pricing relies on adding a fixed markup to the cost of goods sold, and variable pricing—although it has some flexibility—typically refers to price adjustments within a more narrow range without the tiered strategy of graduated pricing. Therefore, the graduated recovery method stands out for its ability to adapt pricing tiers to the broader market context.