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Which of the following methods belong to the category of demand/market-based pricing? A. Surge pricing…

Demand-based (or market/customer-value-based) pricing methods set prices according to buyers' perceived value and intensity of demand rather than seller cost or competitor…

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Which of the following methods belong to the category of demand/market-based pricing?

A. Surge pricing

B. Premium pricing

C. 'What the traffic can bear' pricing

D. Discount pricing

E. Parity pricing

Select one answer
Answer and explanation

Correct answer C

Demand-based (or market/customer-value-based) pricing methods set prices according to buyers' perceived value and intensity of demand rather than seller cost or competitor parity. Surge pricing (dynamic peak-demand pricing, A), Premium pricing (capturing high willingness-to-pay for superior value, B), and 'What the traffic can bear' pricing (charging the maximum price each segment will tolerate, C) are all demand-based pricing methods.

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