Which of the following best explains 'perceived value pricing'?
A) Price is based on what the market can bear.
B) Price is based on the amount of profit that should be realized.
C) Price is based on the importance of the customer to the supplier.
D) Price is based on expected supply of the product.

Question

Which of the following best explains 'perceived value pricing'? 
A) Price is based on what the market can bear. 
B) Price is based on the amount of profit that should be realized. 
C) Price is based on the importance of the customer to the supplier. 
D) Price is based on expected supply of the product.

Quizplus · Accepted Answer

Perceived value pricing is a pricing strategy where the price is based on what the market is willing to pay or can bear. It considers the customer's perceived value of the product or service rather than the cost of production or the profit the supplier wants to make.

Which of the Following Best Explains 'Perceived Value Pricing