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      Question

      If a bank increases service charges slightly but

      enhances value-added services simultaneously, it is following:
      A Penetration pricing Correct Answer Incorrect Answer
      B Value-based pricing Correct Answer Incorrect Answer
      C Cost-plus pricing Correct Answer Incorrect Answer
      D Skimming pricing Correct Answer Incorrect Answer
      E Predatory pricing Correct Answer Incorrect Answer

      Solution

      Value-based pricing sets price based on perceived customer value rather than cost. Why others are incorrect: Penetration uses low prices; Cost-plus uses cost calculation; Skimming sets high price initially; Predatory aims to eliminate competitors. Banking Example: Premium account with concierge services.

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