In ________, the list price is determined by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion.

Question

Quizplus · Accepted Answer

The description matches the concept of value-based pricing, where the price is based on the perceived value of the product to the customer, rather than on its production cost or the competition. The price is set to capture the maximum value from the customer while still providing a profit margin for the business. The cushion mentioned in the question is often referred to as the "value-add" or the "perceived value."

In ________, the List Price Is Determined by Estimating What