Question
Which pricing is based on perceived customer value?
Solution
Detailed Concept Explanation Value-based pricing sets price according to customer’s perceived value, not cost. Example in banking:
- Premium credit cards priced higher due to lounge access & concierge services
- A. Cost-based pricing: Cost + margin
- C. Competition-based pricing: Matches competitor prices
- D. Penetration pricing: Low price to enter market quickly
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