Swatch surveyed the market and identified an unserved segment of watch buyers.Using these results,they created a watch at a price consumers were willing to pay.The unorthodox order of this marketing mix decision is an example of ________.
A)competition-based pricing
B)cost-plus pricing
C)target costing
D)value-based pricing
E)penetration pricing

Question

Quizplus · Accepted Answer

Target costing is a pricing strategy where a company identifies a target price that consumers are willing to pay and then works backward to create a product that can be profitably sold at that price. This approach aligns with the scenario described.

Swatch Surveyed the Market and Identified an Unserved Segment of Watch