One of the difficulties associated with value-based pricing is that
A) costs are impossible to compute.
B) only the creator of a new product can fully understand its value to consumers.
C) value depends on variable costs and not fixed costs.
D) everyday low pricing has neutralized the impact of price on consumers' purchase decisions.
E) it necessitates a great deal of consumer research to be implemented successfully.

Question

Quizplus · Accepted Answer

Value-based pricing requires a thorough understanding of the perceived value of a product to consumers, which necessitates extensive consumer research to implement successfully. While costs are considered in value-based pricing, they are not the sole determining factor in setting a price. The creator of a product may have insight into its value, but it is important to gather input from the target market. Everyday low pricing is a separate pricing strategy that does not necessarily negate the impact of price on consumer decisions.

One of the Difficulties Associated with Value-Based Pricing Is That