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

Question

Quizplus · Accepted Answer

Target pricing is a pricing method that sets the price based on the customers' perceived value of the product. It is a customer-focused approach that takes into consideration the price that customers are willing to pay for the product.

Target Pricing