With _____, a product's allowable cost is strictly a function of what a market segment is willing to pay less the profit goals for the product.

Question

Quizplus · Accepted Answer

Target pricing is a pricing strategy where the cost of the product is determined based on the price that the target market is willing to pay, minus the desired profit margin. Therefore, the allowable cost of the product is strictly determined by the target market's willingness to pay rather than other factors such as production costs, competitors' prices, or market share goals.

With _____, a Product's Allowable Cost Is Strictly a Function