Companies that adopt value-added pricing ________.
A) consider value-added features as a fitting substitute for aggressive cost cutting
B) set incredibly low prices to meet competition
C) attach value-added features and services to differentiate their offers and support their higher prices
D) overprice their products without any apparent justification
E) underprice their products and lower quality to boost demand in the short-run

Question

Quizplus · Accepted Answer

Companies that adopt value-added pricing attach value-added features and services to differentiate their offers and support their higher prices. This pricing strategy emphasizes the value added to the product or service and the benefits it provides to the customer, rather than solely focusing on the cost of production or pricing based on the competition. It can be an effective way to distinguish a product or service from competitors and create a perceived higher value for the customer.

Companies That Adopt Value-Added Pricing ________