Which of the Following Is True of Value-Based Pricing

question 131

Multiple Choice

Which of the following is true of value-based pricing?

• A) The targeted value and price drive decisions about what costs can be incurred and the resulting product design.
• B) Value-based pricing is mostly product driven.
• C) Value-based pricing involves setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for its effort and risk.
• D) The marketer usually designs a product and marketing program and then sets the price.
• E) A company using value-based pricing designs what it considers to be a good product, adds up the costs of making the product, and sets a price that covers costs plus a target profit.

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Definitions:

Moral

Pertaining to principles or rules of right conduct or the distinction between right and wrong; ethical.

Emotional Maturity

The ability to understand, manage, and express one's emotions effectively and appropriately.

Self-Control

The ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.

Mood Swings

Rapid and extreme fluctuations in a person's emotional state.