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…
Choose your answer
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
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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UGC NET Commerce