Which of the following is true with regard to value-added pricing?
A) Companies that practice value-added pricing typically match the competition by cutting prices.
B) Companies practicing value-added pricing differentiate their offers by attaching value-added features to offerings that, in turn, justify higher prices.
C) The intrinsic value of products sold by companies practicing value-added pricing is far less than their actual selling price.
D) Companies practicing value-added pricing primarily rely on cost differentiation.
E) Value-added pricing is the most suitable pricing strategy in pure monopolies.

Question

Quizplus · Accepted Answer

Value-added pricing is a strategy in which companies add value to their products or services with additional features, benefits, or services to justify a higher price than competitors. This differentiation helps to create a perception of higher value in the customer's mind. Companies that practice value-added pricing differentiate their offers by attaching value-added features to offerings that, in turn, justify higher prices.

Which of the Following Is True with Regard to Value-Added