The improvement value method and the cost of ownership method are two approaches for setting prices that are _______ methods.
A) cost-based
B) competitor-based
C) production-based
D) value-based
E) market-based

Question

Quizplus · Accepted Answer

The improvement value method and the cost of ownership method both focus on the value that a product or service provides to the customer. Therefore, they are value-based methods. While cost-based, competitor-based, production-based, and market-based methods can also be used for pricing, they do not directly consider the value that the customer receives from the product or service.

The Improvement Value Method and the Cost of Ownership Method