Which of the following is true of value-based pricing?
A) The targeted value and price drive decisions about what costs can be incurred and the resulting product design.
B) Value-based pricing is mostly product driven.
C) Value-based pricing involves setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for its effort and risk.
D) The marketer usually designs a product and marketing program and then sets the price.
E) A company using value-based pricing designs what it considers to be a good product, adds up the costs of making the product, and sets a price that covers costs plus a target profit.

Question

Quizplus · Accepted Answer

Value-based pricing involves setting prices based on the value that the product provides to customers. Therefore, the targeted value and price drive decisions about what costs can be incurred and the resulting product design. This approach prioritizes creating the most value for customers while maintaining profitability, rather than simply covering costs and adding a target profit margin like in cost-based pricing.

Which of the Following Is True of Value-Based Pricing