Which of the following pricing techniques is most sensitive to customers' responses to price?
A)cost-plus percentage-of-cost pricing
B)experience curve pricing
C)cost-plus fixed-fee pricing
D)standard markup pricing
E)target pricing

Question

Quizplus · Accepted Answer

Target pricing is the most sensitive to customers' responses to price because it starts with determining the maximum price a customer would be willing to pay based on perceived value and then setting the price accordingly. If the customers do not respond positively to the price, adjustments can be made to the product or the pricing strategy to better align with their needs and preferences. In contrast, the other pricing techniques listed such as cost-plus or standard markup pricing are more focused on internal cost considerations rather than customer demand.

Which of the Following Pricing Techniques Is Most Sensitive to Customers