________ Is a Method of Setting Prices Based on Customer

question 94

Multiple Choice

________ is a method of setting prices based on customer perceptions of a product's worth.

• A) Cost-based pricing
• B) Optimal pricing
• C) Skim pricing
• D) Freemium pricing
• E) Value-based pricing

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Definitions:

Marginal Satisfaction

The change in satisfaction or utility that a consumer experiences from consuming an additional unit of a good or service.

Utility-Maximizing

The economic principle that consumers choose combinations of goods and services to maximize their satisfaction or utility under budget constraints.

Economic Theory

A set of principles and models that explain how economic agents interact and how economies function.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.