When setting the price of a product or service, what must the price equal?
A) that of your competitors
B) the perceived value to target customers
C) the cost of your product plus a markup
D) the amount of money consumers can afford

Question

Quizplus · Accepted Answer

The price of a product or service should ideally equal the perceived value to the target customers, as this takes into consideration the customer's willingness to pay and the benefits they perceive from the product. Pricing based solely on competitors' prices, cost of production, or affordability of consumers may not accurately reflect the value of the product or service to the target market.

When Setting the Price of a Product or Service, What