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 is using target pricing, which involves determining the price that consumers are willing to pay for a product, and then working backwards to determine the margins for wholesalers, retailers, and the manufacturer. This approach is common in industries where competing on price is difficult, and involves setting a price based on the value that the product provides to the customer.

The Swedish Manufacturer of Asko Dishwashers Concluded That Consumers Would