Value-based pricing methods include approaches to setting prices that focus on the overall value of the product offering
A) as recognized by competitors.
B) as perceived by the consumer.
C) relative to production costs.
D) in relationship to fixed and variable costs.
E) in order to minimize bundling charges.

Question

Quizplus · Accepted Answer

Value-based pricing methods focus on the perceived value of the product offering by the consumer. It is not based on what competitors are charging, production costs, fixed or variable costs, or bundling charges. Instead, it takes into account the benefits and perceived value that the customer receives from the product, which allows the company to set prices accordingly.

Value-Based Pricing Methods Include Approaches to Setting Prices That Focus