In value-based pricing, the list price is determined by estimating what customers are willing to pay for a product and then backing off a bit to provide a cushion.

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This is true. Value-based pricing involves determining the perceived value of a product to customers and setting the price accordingly. The list price is typically set slightly lower than what customers are willing to pay, in order to provide a buffer and potentially attract more sales.

In Value-Based Pricing, the List Price Is Determined by Estimating