Annie Clarke owns a smartphone app development firm. The way Annie prices her products is to determine what consumers are willing to pay, and then she backs off a bit to provide a cushion. The method that Annie used to determine her prices is called ________ pricing.

Question

Quizplus · Accepted Answer

Annie Clarke uses value-based pricing, which involves determining what customers are willing to pay based on the perceived value of the product or service, rather than focusing on costs or competitors' prices. She then adds a cushion to ensure profitability.

Annie Clarke Owns a Smartphone App Development Firm