Question

Which of the following types of pricing considers neither what the buyer would be willing to pay for product performance nor the pricing of competitive products in the market?

A) value-in-use pricing

B) perceived-value pricing

C) customerization-based pricing

D) cost-based pricing

E) performance-based pricing

Answer 1

Cost-based pricing does not consider what the buyer would be willing to pay or the pricing of competitive products.

Step-by-step explanation:

The type of pricing that considers neither what the buyer would be willing to pay for product performance nor the pricing of competitive products in the market is cost-based pricing.

Cost-based pricing is a method of pricing products or services by considering the production costs and adding a markup to cover expenses and generate profit.

It does not take into account the value or perceived value of the product or the pricing of competitive products.

For example, if a company incurs $10 in production costs for a product and adds a $5 markup, the selling price would be $15, regardless of what the buyer would be willing to pay or the pricing of competitive products.