The idea of value-based marketing requires firms to charge a price that
A)covers costs and generates a modest profit.
B)includes the value of the effort the firm put into the product or service.
C)captures the value customers perceive that they are receiving.
D)prioritizes customer excellence above operational excellence.
E)matches competitors' prices.

Question

Quizplus · Accepted Answer

Value-based marketing requires firms to capture the value customers perceive that they are receiving. This means that the price should be based on the perceived value of the product or service to the customer, rather than just the cost of producing it or matching competitors' prices. The goal is to provide customers with a high level of value and satisfaction, which in turn can lead to customer loyalty and increased profits for the firm.

The Idea of Value-Based Marketing Requires Firms to Charge a Price