Which pricing method is demonstrated by the following statement? "Alternative Pioneering Systems concluded that consumers would be willing to pay approximately $100 for a food dehydrator

The correct answer is Option d - Target Pricing.

• In this pricing strategy, first, the seller finds the competitive price in the market for the product. We can say that the seller will find out how much a buyer will be willing to pay for their product. Based upon that price, the seller will then deducts its margin to arrive at the cost.

Explanation of the incorrect options:

• Option a - It is psychological pricing strategy. This pricing addresses a superior or high class of customer group who are associated with purchasing products of high price and superior quality. The mindset of this category of customers is that higher price means higher quality.
• Option b - It is a pricing strategy where the seller fixes different prices for the same category of goods according to their character, attributes, and quality.
• Option c - It is a strategy where the seller initially sets a higher price for the product and then reduces the price by giving discounts to attract customers.
• Option e - It refers to setting the price of the product above or below the expected competitor price or other benchmark prices.