Customer-Driven Pricing

What is customer driven pricing also known as?

• Value based pricing

• Cost based pricing

• Competition based pricing

• Market based pricing

What is the assumption behind customer-based or value-based pricing?

• Consumers are willing to pay any price for a product

• Consumers are willing to pay a special price when the value offered exceeds the given cost

• Consumers are only interested in low prices

• Consumers are not influenced by the perceived value of a product

When does customer driven pricing work best?

• When a product lacks differentiation from competitors

• When a product is highly personalized and customizable

• When competition is high

• When a product is expensive

What is the main challenge associated with measuring customer value in value-based pricing?

• Determining what constitutes value for different consumers

• Calculating the production costs

• Measuring the demand for the product

• Quantifying the costs of ingredients

What is good-value pricing in value-based pricing?

• Matching prices with competitors

• Offering the right combination of services and quality for an accurate and fair price

• Setting high prices for premium products

• Charging lower prices for low-quality products

What is value-added pricing in value-based pricing?

• Adding features and charging higher prices

• Setting high prices for premium products

• Offering the right combination of services and quality for an accurate and fair price

• Charging lower prices for low-quality products

What is the key challenge in determining what constitutes value for different consumers in value-based pricing?

• Quantifying the costs of ingredients

• Measuring the demand for the product

• Determining the perceived value of the product

• Calculating the production costs

What is the primary approach used by companies to measure customer value in value-based pricing?

• Setting prices based on production costs

• Conducting consumer questionnaires

• Relying on market demand

• Analyzing competitors' prices

Which industry is most often associated with using good-value pricing and value-added pricing?

• Health & Wellness, Beauty

• Airlines

• Automotive

• Apparel & Footwear

What is customer driven pricing based on?

• Setting prices based on competitors' prices

• Setting prices based on perceived value

• Setting prices based on market demand

• Setting prices based on production costs