The pricing strategy that Michael is discussing with the customer, which emphasizes savings by substituting his company's steel for the current supplier's steel, represents Value in use pricing. This approach focuses on the overall value and benefits that the customer will experience by using the product, rather than just the initial purchase price.
Michael is a sales rep for a steel manufacturer. He is talking to a customer about the new pricing strategy his firm is using which will save his customer money when he substitutes the steel from Michael's company for the steel they currently use.What type of pricing does this represent?
Multiple choice question.
Leader pricing
Bait pricing
Break-even pricing
Value in use pricing
1 answer