When a coffee shop in a suburban mall and an upscale cafe in a luxury hotel charge different prices for the same cup of coffee served to customers who find the atmosphere in the hotel worth the difference,what is the pricing method used?
A) demand-based
B) break-even
C) value-based
D) cost-based

Question

Quizplus · Accepted Answer

This scenario describes value-based pricing, where the price is determined by how much value customers place on the product, in this case, the atmosphere of the upscale cafe justifying a higher price for the same cup of coffee.

When a Coffee Shop in a Suburban Mall and an Upscale