Which of the following is true of value-based pricing?
A)The cost of making a product and the desired profit margin are the two primary determinants in setting a value-based price.
B)Value-based pricing does not consider what customers require from a product in terms of performance and price.
C)Value-based pricing takes customer needs into account,but fails to consider customers' price sensitivity.
D)In value-based pricing,price is developed around a product's relative strengths to give customers greater benefits than competing products offer.
E)Value-based pricing is based on features of the product,but fails to consider the prices of similar products in the market.

Question

Quizplus · Accepted Answer

Value-based pricing focuses on setting prices based on the value perceived by the customer. This includes taking into account customer needs and preferences as well as considering what competing products offer. The goal is to develop prices that provide customers with greater benefits than competing products in order to capture a share of the market. The cost of making the product and desired profit margin may be considered, but they are not the primary determinants in setting a value-based price. Value-based pricing also takes into consideration customers' price sensitivity. Therefore, option D is the correct choice.

Which of the Following Is True of Value-Based Pricing