Asked by Brooke Urena on May 03, 2024
Verified
The idea of value-based marketing requires firms to charge a price that
A) covers costs and generates a modest profit.
B) includes the value of the effort the firm put into the product or service.
C) captures the value customers perceive that they are receiving.
D) prioritizes customer excellence above operational excellence.
E) matches competitors' prices.
Value-based Marketing
A marketing approach that focuses on delivering products and services that provide superior value to customers, leading to strong brand loyalty and higher customer satisfaction.
Perceived Value
The relationship between a product’s or service’s benefits and its cost.
Modest Profit
A relatively small financial gain achieved by a business from its operations, often seen as reasonable or not excessively high.
- Recognize the role of value-based marketing in determining pricing strategies.
Verified Answer
CM
Charles MwansaMay 10, 2024
Final Answer :
C
Explanation :
Value-based marketing requires firms to capture the value customers perceive that they are receiving. This means that the price should be based on the perceived value of the product or service to the customer, rather than just the cost of producing it or matching competitors' prices. The goal is to provide customers with a high level of value and satisfaction, which in turn can lead to customer loyalty and increased profits for the firm.
Learning Objectives
- Recognize the role of value-based marketing in determining pricing strategies.