📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store
  • ✖

      Question

      Which pricing is based on perceived customer value?

      A Cost-based Correct Answer Incorrect Answer
      B Value-based Correct Answer Incorrect Answer
      C Competition-based Correct Answer Incorrect Answer
      D Penetration Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      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
      This approach maximises profitability when differentiation exists. Why other options are NOT correct
      • A. Cost-based pricing: Cost + margin
      • C. Competition-based pricing: Matches competitor prices
      • D. Penetration pricing: Low price to enter market quickly

      Practice Next
      ask-question