Managers determine what a customer is willing to pay for a product or service under which one of these pricing methods??

Question

Quizplus · Accepted Answer

Market-based pricing method considers the customer's perception of value and the price of competing products in the market. Hence, the managers can determine what the customer is willing to pay based on the market conditions and customer behavior. Cost-based pricing method considers the production cost to determine the prices, which may not align with customer needs and market conditions. Activity-based pricing method and life cycle pricing method are not directly related to customer willingness to pay.

Managers Determine What a Customer Is Willing to Pay for a Product