Question

Which of the following statements about pricing strategies is false?

Value-based pricing is the reverse of cost-based pricing.

Cost-based pricing relies on consumer perception of value to drive pricing.

Pricing a product mix is often difficult because various products have related demand and costs, and they face different degrees of competition.

Major price-adjustment strategies include discount and allowance, segmented, reference, psychological, promotional, geographical, dynamic, and international pricing.

Answer 1

Cost-based pricing relies on consumer perception of value to drive pricing.

This statement is false since it is value based pricing which relies on customer's assessment of the worth of a product. Statement 1 is true. Cost based pricing relies on the cost of production. Statement 3 is true since pricing a product mix is a complex process due to different demands and costs. Statement 4 is also true since discount, segmentation etc are all startegies for peice adjustment.