The Swedish manufacturer of Asko dishwashers concluded that consumers would be willing to pay approximately $989 for a dishwasher that was quieter than any other machine on the market. Based on this price, Asko determined the margins that would have to be allowed for wholesalers and retailers to give the $989 retail price. Asko used:

Question

Quizplus · Accepted Answer

Asko used target pricing to determine the retail price based on the perceived value to customers. They then worked backwards to determine the margins that would be required for wholesalers and retailers to sell the product at that price.

The Swedish Manufacturer of Asko Dishwashers Concluded That Consumers Would