Question

5) ________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing.

1) Value-based pricing
2) Target return pricing
3) Variable costs
4) Price elasticity
5) Product image

Answer 1

Value-based pricing uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing.

Step-by-step explanation:

Value-based pricing uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing. It focuses on the value that the product provides to the customer and sets the price based on that perceived value. For example, a luxury brand may price its products higher because customers perceive them as having high value and are willing to pay more for them.