Target Return Pricing

Concept summarized by Sam Mishra, MBA (MIT Sloan)

Pricing of a product / service, when set to satisfy predetermined ROI (return on investment) criteria, is known as target return pricing. Here, the investment which goes into the ROI calculation is the total amount the marketing strategists think has been utilized to bring the product / service to market.

Also see penetration pricing, skimming pricing, and perceived value pricing.