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 of these appliances on the market.Based on this price,Asko determined the margins that would have to be given to wholesalers and retailers to arrive at the $989 retail price.Asko used

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Asko used target pricing. Target pricing involves starting with a desired selling price and working backwards to determine the costs that can be incurred to achieve that price. In this case, Asko set the price they believed consumers would be willing to pay ($989) and then determined the margins they could give to wholesalers and retailers while still maintaining that price.

The Swedish Manufacturer of Asko Dishwashers Concluded That Consumers Would