What method of pricing involves pricing the product based on how it benefits the customers?
A)target-return pricing
B)customer-led pricing
C)value-based pricing
D)psychological pricing

Question

Quizplus · Accepted Answer

Value-based pricing involves pricing the product based on the value it provides to the customers. It focuses on setting prices that are a reflection of the benefits provided by the product, rather than the costs of production or competitive prices. This approach helps to ensure that the price is aligned with the perceived value of the product, ultimately leading to customer satisfaction and loyalty. Target-return pricing involves setting prices based on the desired profit margin, while customer-led pricing involves setting prices based on customer demand. Psychological pricing involves using pricing tactics to influence consumer perception and behavior.

What Method of Pricing Involves Pricing the Product Based on How