Question

Differentiate between value and cost benefits. Provide examples for each type of benefit.

Answer 1

Value	Cost
High prices attracts rich people earns high profi per unit sold example: Rolls Royce car	Competitive prices attracts normal people earns low profit per item sold example: wheat flour

Some of the other differences are:

In cost-based pricing:
- design productexa
- calculate costs
- price based on costs
- convince people to buy

In value based pricing
- assess customer perceived value
- set price based to match perceived value
- determine costs that can be incurred
- design a product to deliver desired value at target price.