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

Question

Quizplus · Accepted Answer

This is the description of value-based pricing, which is focused on setting a price based on the perceived value of a product or service to the customer. The price is not determined by costs or the competition, but rather by what the customer is willing to pay. The goal is to capture as much value as possible without pricing too high and driving customers away.

In ________ Pricing, the List Price Is Determined by Estimating