Which of the following statements is not applicable to target pricing?
A) It is based on market research.
B) It is the amount customers are willing to pay for the product or service.
C) It is based on traditional cost-based pricing.
D) The total cost of the product is a function of its target price.

Question

Quizplus · Accepted Answer

Target pricing is not based on traditional cost-based pricing; instead, it starts with the price that customers are willing to pay and works backward to determine the costs that can be incurred, making C the correct choice as it does not apply to target pricing.

Which of the Following Statements Is Not Applicable to Target