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    Question

    If a bank sets loan interest rates based on how

    customers perceive value rather than cost, it follows:
    A Competitive pricing Correct Answer Incorrect Answer
    B Cost-plus pricing Correct Answer Incorrect Answer
    C Penetration pricing Correct Answer Incorrect Answer
    D Value-based pricing Correct Answer Incorrect Answer
    E Skimming pricing Correct Answer Incorrect Answer

    Solution

    Value-based pricing focuses on customer perception of benefit. Why Other Options Are Incorrect • A: Competitor-focused • B: Cost-focused • C: Low entry strategy • E: High introductory pricing Banking Example: Premium wealth advisory services charging higher fees.

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