Julia owns a boutique store in which she sells a variety of home décor products.She works backward through markups given to wholesalers and to herself to determine what price she can charge for the products.Which of the following approaches to pricing is she using here?
A)yield management pricing
B)experience curve pricing
C)bundle pricing
D)target pricing

Question

Quizplus · Accepted Answer

Julia is using the target pricing approach.Target pricing results because the manufacturer deliberately adjusts the composition and features of a product to achieve the target price to consumers.Target pricing is demand-based and focused on what consumers are willing to pay.

Julia Owns a Boutique Store in Which She Sells a Variety