GENERAL KNOWLEDGE

Detailed explanation-1: -Definition: Perceived value pricing is that value which customers are willing to pay for a particular product or service based on their perception about the product.

Detailed explanation-2: -Third, value is what a customer gets in exchange for the price it pays. We see a market offering as having two elemental characteristics: its value and its price. Thus raising or lowering the price of a market offering does not change the value that such an offering provides to a customer.

Detailed explanation-3: -A marketing exchange is what happens any time two or more people trade goods or services. In marketing theory, every exchange is supposed to produce “utility, ‘’ which means the value of what you trade is less than the value of what you receive from the trade.

Detailed explanation-4: -Bartering With Consumer Goods In its simplest form, bartering is the exchange of one valuable product for another between two individuals. Person A has two chickens but wants to get some apples; meanwhile, Person B has a bushel of apples but wants some chickens.

Detailed explanation-5: -Willingness to pay, sometimes abbreviated as WTP, is the maximum price a customer is willing to pay for a product or service. It’s typically represented by a dollar figure or, in some cases, a price range.