Value of service pricing is best defined as:
A) pricing based upon common costs
B) what the traffic will bear
C) picing based on marginal costs
D) pricing based on average costs

Question

Quizplus · Accepted Answer

Value of service pricing is based on what the market is willing to pay or what the traffic will bear. It takes into consideration the perceived value of the service by the customer, competition, and other external factors that influence the demand for the service. Pricing based on common, marginal, or average costs may not reflect the true value of the service to the customer and could lead to underpricing or overpricing.

Value of Service Pricing Is Best Defined As