Target pricing:
A)is used for short-term pricing decisions
B)is one form of cost-based pricing
C)estimates are based on customers' perceived value of the product
D)relevant costs are all variable costs

Question

Quizplus · Accepted Answer

Target pricing estimates the price of a product based on the customers' perceived value of the product, which is a form of value-based pricing. It is a long-term pricing strategy where a company aims to set a price that targets a specific market segment and achieves a desired profit margin. It involves analyzing the costs, competition and consumer demand to set a targeted price for the product. Therefore, the correct option is C.

Target Pricing