Using demand-based pricing,you work backwards,figuring out how much consumers are willing to pay for a product and then subtracting an amount to cover your profit.

Question

Quizplus · Accepted Answer

Demand-based pricing involves setting prices based on what consumers are willing to pay, but it does not involve subtracting an amount to cover profit. Instead, it focuses on understanding the perceived value of the product to the consumer and setting a price that matches this perceived value.

Using Demand-Based Pricing,you Work Backwards,figuring Out How Much Consumers Are