Which one of the following statements is correct? Target pricing:
A)is possible only where a virtual monopoly for a product exists
B)is undertaken by price setters in a market
C)involves establishing a price by reference to what the market will bear
D)is an alternative way of describing cost-plus pricing

Question

Quizplus · Accepted Answer

Target pricing involves setting a price based on what customers are willing to pay or what the market will bear, rather than solely on production costs or profit margins. This approach is often used in competitive markets to ensure that a product is priced attractively to consumers.

Which One of the Following Statements Is Correct? Target Pricing