Which of the Following Is True with Regard to Value-Added

question 124

Multiple Choice

Which of the following is true with regard to value-added pricing?

• A) Companies that practice value-added pricing typically match the competition by cutting prices.
• B) Companies practicing value-added pricing differentiate their offers by attaching value-added features to offerings that, in turn, justify higher prices.
• C) The intrinsic value of products sold by companies practicing value-added pricing is far less than their actual selling price.
• D) Companies practicing value-added pricing primarily rely on cost differentiation.
• E) Value-added pricing is the most suitable pricing strategy in pure monopolies.

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Definitions:

Direct Exchange

The process of trading goods or services directly for other goods or services without using a medium of exchange, such as money.

Goods And Services

The products and activities that satisfy human wants or needs, goods being tangible items and services being intangible.

Barter

A system of exchange where goods or services are traded directly for other goods and services without the use of money.

Commodity Money

Commodity Money is a type of currency in which the value comes from a commodity of which it is made, such as gold or silver coins.