Target Pricing Refers to

question 120

Multiple Choice

Target pricing refers to

• A) a method of selecting specific prices wholesalers and retailers are willing to pay based upon the elasticity of each given item.
• B) a method of charging different prices to maximize revenue for a set amount of capacity at any given time.
• C) the practice of simultaneously increasing product and service benefits while maintaining or decreasing price.
• D) a method of estimating the price that ultimate consumers would be willing to pay for a product, then working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers..
• E) a method of estimating the price that ultimate consumers would be willing to pay for a product, then determining how much wholesalers wish to charge its customers, deliberately adjusting the composition and features of the product to achieve the target price to consumers.

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Definitions:

Free Trade

A policy by which governments do not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports) or quotas.

Domestic Producers

Local manufacturers or producers who create goods and services within a country's borders, contributing to the domestic economy.

Foreign Producers

Companies or individuals that produce goods or services in a country other than the one where the goods or services are consumed.

Tariff Revenue

The income generated by the government from taxing imports.