A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy, especially if the strategy
A)leads the marketer to be the low-cost seller.
B)is supported by consistent advertising and distribution strategies.
C)challenges consumers to discard their perceptions of value.
D)is consistent with a competitive target return strategy.
E)is measured against the competition.

Question

Quizplus · Accepted Answer

Setting prices based on how customers develop their perceptions of value is known as value-based pricing. This strategy requires consistent advertising and distribution strategies to help customers understand the value they are getting for their money. This approach can be effective in pricing strategies as it helps to differentiate the product from competitors and can allow the marketer to charge a premium price.

A Strategy of Setting Prices Based on How Customers Develop