Which of the following does an effective pricing strategy do?
A)Keeps prices below costs
B)Makes service pricing difficult to understand
C)Fulfils the promise of the value proposition
D)Keeps price levels below the target customers' willingness to pay
E)Eliminates non-monetary costs

Question

Quizplus · Accepted Answer

An effective pricing strategy fulfills the promise of the value proposition, which means that the price should accurately reflect the value that the customer receives from the product or service. The other options, such as keeping prices below costs, making pricing difficult to understand, and keeping prices below the target customers' willingness to pay, are not effective pricing strategies as they can lead to negative consequences for the business. Eliminating non-monetary costs could be a part of an effective pricing strategy, but it is not the main goal.

Which of the Following Does an Effective Pricing Strategy Do