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:

Social Mobility

The movement of individuals, families, or groups through a system of social hierarchy or stratification.

Social Class

Social class is a division of society based on social and economic status, influencing individuals' lifestyles, behaviors, and opportunities.

Marketing

The process of promoting, selling, and distributing a product or service, including market research and advertising.

Social Mobility

The relocation of single people, families, or groups across different levels within a social hierarchy or stratification system.