Relative to cost-plus pricing,target pricing first determines product characteristics and target price on the basis of customer preferences and expected competitor responses,and then a target cost.

Question

Quizplus · Accepted Answer

Target pricing first focuses on the customer's preferences and expected competitor responses to determine product characteristics and target price, and then calculates the target cost based on these factors. Cost-plus pricing, on the other hand, starts with the cost of producing the product and then adds a markup to determine the final price.

Relative to Cost-Plus Pricing,target Pricing First Determines Product Characteristics and Target