Michael Jones owns a Web design firm. The way Michael prices his products is to determine what consumers are willing to pay, and then he backs off a bit to provide a cushion. The method that Michael used to determine his prices is called:

Question

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Michael uses value-based pricing, which involves determining what consumers are willing to pay based on the perceived value of the product or service. This can involve market research, customer feedback, and understanding the competition. By using a value-based pricing strategy, Michael is able to price his products in a way that reflects their worth to the customer, while also providing a profit margin for his business.

Michael Jones Owns a Web Design Firm