The Swedish manufacturer of Asko dishwashers concluded that consumers would be willing to pay approximately $1000 for a dishwasher that was quieter than any other on the market. Asko determined about $250 in markups would have to be given to wholesalers and retailers, and then designed the quietest product that it could make for $750. Asko used

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This pricing strategy is known as target pricing, which involves determining the price point that consumers would be willing to pay for a product and then designing and pricing the product accordingly to meet that target. In this case, Asko determined that consumers were willing to pay $1000 for a quieter dishwasher, and then worked backwards to design a product that they could sell for $750 while still achieving the desired level of quietness.

The Swedish Manufacturer of Asko Dishwashers Concluded That Consumers Would