Target pricing is a pricing method that
A) aims to increase market share by accepting a lower profit margin.
B) focuses on the economic conditions of the target market segment.
C) is designed to generate a desirable rate of return on investment.
D) maximizes cost reduction techniques to respond to market demand.
E) keeps prices in a moderate range by increasing the rate of return.

Question

Quizplus · Accepted Answer

Target pricing is a method where a company determines the desired profit margin and then works backward to set a price that will achieve that rate of return on investment.

Target Pricing Is a Pricing Method That