Cost-based pricing relies on consumers' perceptions of value to drive pricing.

Question

Quizplus · Accepted Answer

Cost-based pricing is driven by the costs of production and distribution, rather than consumers' perceptions of value. Pricing decisions are based on the amount it costs to create and deliver a product or service, with a markup added to ensure profitability. This approach does not consider the perceived value of the product or service to the consumer, and can result in pricing that is not in line with what customers are willing to pay.

Cost-Based Pricing Relies on Consumers' Perceptions of Value to Drive