Which of the following pricing techniques is the result of manufacturers deliberately adjusting the composition and features of a product to achieve the target price to consumers?
A)cost-plus percentage-of-cost pricing
B)standard markup pricing
C)cost-plus fixed-fee pricing
D)experience curve pricing
E)target pricing

Question

Quizplus · Accepted Answer

Target pricing is the pricing technique where manufacturers adjust the features or composition of a product to achieve a target price as perceived by the customers. The target price is based on consumer demand, competitor prices, and the company's profit objectives. Cost-plus pricing methods, such as cost-plus percentage-of-cost pricing, standard markup pricing, and cost-plus fixed-fee pricing, involve adding a markup on top of the production cost and do not consider consumer demand or competitor prices for determining the final price. Experience curve pricing involves adjusting prices based on the cumulative production volume, which does not account for the consumers' price perception. Hence, the best choice is option E, target pricing.

Which of the Following Pricing Techniques Is the Result of Manufacturers