The identification of a target price for a newly designed product or service is focused on:
A)The expected costs of production.
B)The required profit margin.
C)The prices charged by existing and potential competitors.
D)Customers and their functional requirements.

Question

Quizplus · Accepted Answer

The target price for a newly designed product or service should be focused on meeting the functional requirements and needs of the customers. This is because customers ultimately determine the success or failure of the product or service, and their willingness to pay for it will depend on whether it meets their needs and provides value. Considering the expected costs of production, required profit margin, and prices charged by competitors are important factors in pricing decisions, but they should be secondary to the needs and preferences of the target customers.

The Identification of a Target Price for a Newly Designed