Demand-based pricing does not consider that customers might be sensitive to nonmonetary prices and may judge quality on the basis of price.

Question

Quizplus · Accepted Answer

Demand-based pricing takes into account that customers may judge quality on the basis of price and that they may be sensitive to nonmonetary factors such as brand reputation, product features, and customer service. This type of pricing strategy is based on the principle of setting prices that will maximize sales volume and revenue, while also taking into account the costs associated with producing and delivering the product or service.

Demand-Based Pricing Does Not Consider That Customers Might Be Sensitive