Value in Use Pricing

question 155

Multiple Choice

Value in use pricing

• A) does not vary from one product to another.
• B) sets a price that will capture some of what customers will save by substituting the firm's product for the one currently being used.
• C) merely sets the price at what customers expect to pay.
• D) sets a rather high price to suggest high quality or high status.
• E) is determined by online auctions.

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Definitions:

Parameter

A numerical characteristic of a population, such as mean or standard deviation, that can be estimated by statistics calculated from a sample.

Statistic

A numerical measure that describes an aspect of a sample of data, such as its mean or variance.

Population

The entire pool from which a statistical sample is drawn and to which the researcher intends the results to apply.

Sample Standard Deviation

A statistic measuring the dispersion or variability of a set of sample data points around the mean.