When a firm is customer driven and seeks to understand the attributes customers want in the goods and services they buy and the value of those attributes to customers, the price of the product is set at a level that seems to the customer to be a good price compared with the prices of other options. What is this strategy called?
A)value-based pricing
B)noncumulative pricing
C)promotional bundling
D)price bundling

Question

Quizplus · Accepted Answer

This strategy is called value-based pricing, where the price of the product is based on the perceived value of the product to the customer. The firm seeks to understand the attributes that customers want and the value of those attributes to customers and sets the price of the product at a level that seems like a good value compared to other options. This strategy often results in higher prices but also higher customer satisfaction and loyalty. Noncumulative pricing refers to a pricing strategy where each unit of the product is priced separately, while promotional bundling and price bundling involve offering multiple products or services together at a discounted price.

When a Firm Is Customer Driven and Seeks to Understand