The price based on customers' perceived value for the product and the price that competitors charge:
A) predatory price.
B) target price.
C) target cost.
D) dumping price.

Question

Quizplus · Accepted Answer

Target price is determined based on customers' perceived value for the product and the price that competitors charge. It is the price that a company aims to achieve in order to meet its profit objectives while remaining competitive in the market. Predatory price is a pricing strategy where a company sets a low price to drive competitors out of business, target cost is a cost management strategy and dumping price is a pricing strategy of selling products at lower prices in foreign markets than the home market.

The Price Based on Customers' Perceived Value for the Product