JY CHEN - Ask Anything, Learn Everything. Logo

In Business / College | 2025-07-06

In value-based pricing, companies charge low prices to win a solid customer base and then invest more in research for future products.

A. True
B. False

Asked by tdopom88

Answer (2)

The statement about value-based pricing is false. Value-based pricing focuses on perceived value rather than low initial pricing. Companies may use penetration pricing to build a customer base, which is different from value-based pricing strategies. ;

Answered by GinnyAnswer | 2025-07-06

The statement is false because value-based pricing focuses on setting prices based on customer perceived value rather than initially charging low prices to attract customers. This differs from penetration pricing, which is designed to build market share through lower prices. Thus, value-based pricing encourages investment in product innovation based on customer value perception.
;

Answered by Anonymous | 2025-07-07

Related Questions in Business

[Free] When the yield to maturity of a bond goes up, the price typically: A. is determined by market factors B. goes down C. does not change D. goes up

[Free] A type of life insurance policy that requires premiums only for a specified number of years or to a specific age is called a: A. term life policy B. limited pay policy C. key man insurance policy D. split dollar policy

[Free] Which of the following correctly explains how the concept of demand affects the change in use of credit? Select the two correct answers. A. High interest rates yield low demand for credit. B. Low interest rates yield high demand for credit. C. High interest rates yield high demand for credit. D. Low interest rates yield low demand for credit. E. Both low and high interest rates yield low demand for credit because consumers see it as an indicator that the market is not in equilibrium. Demand is highest when rates are neither too high nor too low.

[Free] A company is researching mining at four different land areas using different types of equipment. The table below shows the costs of land, equipment, mining, and reclamation for the four locations: | Locations | Cost of land | Cost of equipment | Cost of mining and reclamation | Time taken to mine the area | | --------- | ------------ | ----------------- | -------------------------------- | --------------------------- | | 1 | $100,000 | $10,000 | $5,000 per day | 30 days | | 2 | $35,000 | $6,000 | $4,500 per day | 45 days | | 3 | $30,000 | $7,500 | $3,500 per day | 120 days | | 4 | $40,500 | $8,000 | $7,000 per day | 65 days | Considering all costs, which location will cost the least for the company to mine? A. Location 1 B. Location 2 C. Location 3 D. Location 4

[Free] Internal-operational communications are messages that A. are circulated both inside and outside a business B. get an organization's work done C. are sent between competing organizations within the same industry D. employees send to discuss strictly personal matters