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In Value-Based Pricing, the Value of What Differentiates a Product

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In value-based pricing, the value of what differentiates a product from the best available alternative is known as the differentiation value.


Definitions:

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets.

Interest Rate

The percentage of a loan that is applied as interest for the borrower, usually shown as an annual percentage of the remaining loan balance.

Asset Utilization

Measures how efficiently a company uses its assets to generate revenue.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency of the business.

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