Question

​radox, a luxury watch​ brand, identifies a market segment that is willing to pay premium prices for its​ watches, and radox managers select an ideal selling price. managers then determine the costs to create watches that meet the ideal selling price. the​ company's pricing approach is referred to as​ ________.

Answer 1

This is an example of target costing. With target costing companies produce products that fit their goals in certain market conditions. In this case they wanted to fit the ideal price.