In Value-Based Pricing, the List Price Is Determined by Estimating

question 38

True/False

In value-based pricing, the list price is determined by estimating what customers are willing to pay for a product and then backing off a bit to provide a cushion.

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Definitions:

Psychological Dysfunction

A deviation from normal cognitive, emotional, or behavioral functioning, which can lead to distress or impairment in important areas of life.

Negative Affectivity

One of five trait domains associated with personality disorders in the DSM-5, it is characterized by a tendency to feel negative emotions such as anxiety, depression, and suspicion.

Anxiety

A psychological and physiological state characterized by somatic, emotional, cognitive, and behavioral components, which is often the result of stress and worry.

Depression

A common mental disorder characterized by persistent sadness, loss of interest in activities, and a range of physical and cognitive symptoms.