MANAGEMENT

Detailed explanation-1: -Value-based pricing is a strategy of setting prices primarily based on a consumer’s perceived value of a product or service. Value-based pricing is customer-focused, meaning companies base their pricing on how much the customer believes a product is worth.

Detailed explanation-2: -Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business’s marketing plan.

Detailed explanation-3: -Cost-based pricing is the practice of setting prices based on the cost of the goods or services being sold. A profit percentage or fixed profit figure is added to the cost of an item, which results in the price at which it will be sold.

Detailed explanation-4: -the cost of your product or service is the amount you spend to produce it. the price is your financial reward for providing the product or service. the value is what your customer believes the product or service is worth to them.

Detailed explanation-5: -Which of the following is true of value-based pricing? The targeted value and price drive decisions about what costs can be incurred and the resulting product design.