Asked by
Ermina Dzebic
on Dec 15, 2024
Verified
The pricing approach that results in the manufacturer deliberately adjusting the composition and features of the product to achieve the desired price for consumers 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 where the selling price of a product is calculated based on the desired profit margin and the cost to make or buy the product, aiming to ensure competitiveness and affordability.
Product Composition
The combination of different components, materials, or elements that make up a product.
- Become familiar with diverse pricing models and their strategic aims, like prestige pricing, target pricing, and price lining.
- Grasp the principle of working backward from the consumer price to determine the price charged to wholesalers (target pricing).
Verified Answer
FS
Learning Objectives
- Become familiar with diverse pricing models and their strategic aims, like prestige pricing, target pricing, and price lining.
- Grasp the principle of working backward from the consumer price to determine the price charged to wholesalers (target pricing).