Which of the Following Is True of the Value-In-Use Pricing

question 14

Multiple Choice

Which of the following is true of the value-in-use pricing method?

• A)The product price is set to provide customers with an attractive savings after considering the life-cycle costs of the product.
• B)The cost of making a product and the desired profit margin are the two primary determinants in setting a value-in-use price.
• C)Price is set by unbundling a product's features,placing a price on each,and then allowing customers to select the features they want at a price that they are willing to pay.
• D)It considers neither what the buyer would be willing to pay for product performance nor the cost of other similar products in the market.
• E)Price is set on the basis of the value that customers realize when they compare the price and benefits of the company's product with those of a key competitor's product.

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Definitions:

Prokaryotic Cells

Cells without a defined nucleus or other membrane-bound organelles, commonly found in bacteria and archaea.

Archaea

A domain of single-celled microorganisms that are structurally similar to bacteria but have unique genetic, metabolic, and biochemical characteristics.

Bacteria

Microscopic, single-celled organisms found in virtually every environment on Earth, operating in both beneficial and harmful ways to humans.

Mitochondria

Organelles found in the cytoplasm of nearly all eukaryotic cells, responsible for producing energy through the process of oxidative phosphorylation, often referred to as the "powerhouses" of the cell.