In value-based pricing, customers' price expectations are determined by the perceived value of the product or service. This perceived value is subjective and can vary from customer to customer. It is influenced by factors such as the customer's needs, preferences, and willingness to pay. Companies often use market research, customer feedback, and competitive analysis to understand and estimate this perceived value.
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Take the most advantageous pricing approach to increase profitability of your organization. Use our Pricing Strategies presentation to outline factors...
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Cost-Plus Pricing – the process of simply calculating your costs and adding a mark-up. Competitive Pricing – the process of setting a price based on what the competitors' prices. Value-based Pricing – the process of setting a price based on the customer's price expectations. Price Skimming – the process of setting a higher price and bringing it down as the market evolves. Penetration Pricing – the process of setting a lower price to enter a competitive market and rising it with time.