In determining the price of his company's new small-business accounting software,Raymond is assessing how much better his company's software is as compared to alternative products available in the market.Raymond is using _______ pricing.
A) cost-based
B) improvement value
C) reference-based
D) cost of ownership
E) market-based

Question

Quizplus · Accepted Answer

Raymond is using improvement value pricing, which is a strategy that focuses on pricing a product based on the perceived value it provides to the customer compared to existing alternatives in the market. This is in contrast to cost-based pricing, where the price is determined based on the cost of producing and distributing the product, or market-based pricing, where the price is determined based on the prices of similar products already available in the market. Raymond is not using reference-based pricing or cost of ownership pricing in this scenario.

In Determining the Price of His Company's New Small-Business Accounting