Question

Fourth step of value-based pricing is to _______.

• A. Determine incurred costs
• B. Design product
• C. Assess needs of customer
• D. Set target price

Answer 1

The correct option is B Design product

Value based pricing is the strategy which sets prices primarily, but not exclusively, according to the perceived or estimated value of a product or service to the customer rather than according to the cost of the product or its historical prices. So once the customer needs are found out, a target price is set and costs are calculated, finally the product will be designed.