Page 31 - MARKETING MIX

PRICING

Value-Based

Pricing

Value-based pricing bases its

pricing on the buyers' perceptions of

value rather than the seller's cost.

The company uses the nonprice

variables in the marketing mix to

build perceived value in the buyers’

minds and setting price to match the

perceived value.

Sometimes researchers ask

consumers how much they would pay

for each benefit added to the offer. If

the price is higher than the

customer's perceived value, the

seller's sales will suffer. Other

companies might be will underpriced

products sell very well, but produce

less revenue than if the company

raised its price to the perceived-

value level.

Credit : htts://pwww.canva.com/design

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