Final answer:
The correct answer is Value-Based Pricing. Value-based pricing is a pricing strategy that sets the price of a product or service based on the perceived value that customers have for it.
Step-by-step explanation:
The correct answer is a. Value-Based Pricing.
Value-based pricing is a pricing strategy that sets the price of a product or service based on the perceived value that customers have for it. It focuses on understanding the customer's needs, preferences, and willingness to pay for a product, and then setting the price accordingly. This approach recognizes that different customers may have different perceptions of value and is often used for products or services that offer unique features or benefits.
For example, if a company manufactures luxury watches, it may use value-based pricing to set higher prices for its products because customers perceive them to have high quality and prestige.