Setting prices that will capture some of what customers will save by substituting the firm's product for the one currently being used is called Blank______.

Question

Setting prices that will capture some of what customers will save by substituting the firm's product for the one currently being used is called Blank______.
Multiple choice question.

value in use pricing

cost-oriented pricing

value capture

marginal analysis pricing

GPT-4o mini · Answer

The correct answer is **value in use pricing**. This pricing strategy involves setting prices based on the value that customers perceive they will gain by using the firm’s product instead of the product they currently use.