Which of the following statements is true about value pricing?

Question

Quizplus · Accepted Answer

Value pricing is a pricing strategy where the seller sets prices based on the perceived value to the customer rather than on the seller's cost. Hence, it gives customers more value than they expect for the price paid. This implies that value pricing does not necessarily mean a low price alone, but rather it takes into account the customer's perception of value. Option A is incorrect because penetration pricing is a strategy where a seller sets a low price to penetrate the market and gain market share. Option C is incorrect because value pricing is a customer-centric pricing approach where the seller sets prices based on customer value rather than on cost. Option D is incorrect because value pricing does not imply low price alone.

Which of the Following Statements Is True About Value Pricing