As an Amazon Associate I earn from qualifying purchases.

Customer Value Based Pricing Definition and Explanation PDF Download

Learn Customer Value Based Pricing definition in marketing with explanation to study “What is Customer Value-Based Pricing”. Study customer value based pricing explanation with marketing terms to review marketing course for online MBA programs.

Customer Value Based Pricing Definition:

  • Setting price based on buyers' perceptions of value rather than on the seller's cost.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong



Customer Value Based Pricing Explanation:

Customer value based pricing describes buyers' purchase decision. It is a price decided on the customer's perception about the product. Therefore, a market researcher not only works on the designing part of the product, rather they conduct surveys regarding prevailing market trends and pricing strategy. Price is an important part of the market research; it is usually estimated before the launch of marketing activities.

Keep Learning Marketing Explanations

What is Nonexistent Demand?

Clients are ignorant or uninterested in these kinds of item. Or then again the clients think about the item yet ...

What is Dynamic Pricing?

Dynamic pricing is a pricing strategy in which companies set flexible prices for goods and services. Companies usually reset prices ...

What is Adoption?

Adoption is a process in which consumer switch or adopt any new product or service. Either, the consumer has been ...

What is Product Concept?

A need is a customer 's want for an item 's or administration 's explicit advantage, regardless of whether that ...

What is Corporate Retailing?

Corporate retailing describes retailing outlets that attain economies of scale, customer loyalty, brand recognition, purchase ability, trained employees, and higher ...

What is Consumer Involvement?

Consumer involvement is the behavior that motivates consumer to make purchase decision; there are various steps in consumer involvement that ...