Value-Based Pricing Can Be Difficult to Implement Because

question 83

Multiple Choice

Value-based pricing can be difficult to implement because

• A) the way consumers perceive value constantly changes.
• B) this method requires all costs be identified and calculated on a per-unit basis.
• C) value depends on variable costs and not fixed costs.
• D) everyday low pricing has neutralized the impact of price on consumers' purchase decisions.
• E) it is difficult to determine how competitors will price their products.

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Definitions:

Specific Customer Needs

Particular requirements or desires of consumers that businesses aim to meet with their products or services.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, such as cost structure, product offerings, brand, and service.

Competitive Scope

The breadth and scale of competition a company faces, ranging from local to global markets and across various segments.

Cost Leadership

A business strategy aiming to achieve the lowest operational costs in an industry to offer products or services at a lower price than competitors.