Which of the following approaches to new product development starts with estimated price that the customers in the target segment are willing to pay?

Question

Quizplus · Accepted Answer

The target-costing approach starts with estimating the price that the customers in the target segment are willing to pay and then works backwards to determine the cost of production that will enable the company to achieve its desired profit margin. This approach helps to ensure that the product will be priced competitively and meet the needs of the target market.

Which of the Following Approaches to New Product Development Starts