Asked by
Cammi Fulliam
on Dec 15, 2024
Verified
The pricing approach that estimates the price that ultimate consumers would be willing to pay for a product; works backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers is referred to as
A) cost-benefit pricing.
B) cost-plus percentage-of-cost pricing.
C) target pricing.
D) cost-plus fixed-fee pricing.
E) product feature pricing.
Target Pricing
A pricing strategy in which the selling price of a product is determined based on the desired profit margin and market conditions.
Ultimate Consumers
The end users who purchase products or services for personal use and not for manufacturing or resale purposes.
- Comprehend the technique of calculating the price for wholesalers by initiating the process at the consumer price level (target pricing).
Verified Answer
SG
Learning Objectives
- Comprehend the technique of calculating the price for wholesalers by initiating the process at the consumer price level (target pricing).