Exam - Q3

Question 1

Cost-based pricing

Answer 1

Cost-based pricing involves setting prices based on the costs for producing, distributing and selling the product, plus a fair rate of return for its effort and risk

Question 2

Customer value-based pricing

Answer 2

Customer value-based pricing involves setting the price based on buyers’ perceptions of value, rather than on the seller’s cost

Question 3

Competition-based pricing

Answer 3

Competition-based pricing involves setting prices based on competitor’s strategies, costs, prices and market offerings