Question

An equipment producer is introducing a new type of paint sprayer to sell to automobile body-repair shops. The sprayer saves labor time, does as good a job with less expensive paint, and requires less work polishing. The seller should probably use:

Answer 1

Answer: value in use pricing

Explanation: In simple words, value in use pricing refers to the pricing strategy in which the producer of the commodity prices its goods in such a way that the good with highest utility value to the customer will gets highest price and vice- versa.

In such a pricing stare the producing entity focuses on customer preference  rather than the cost of production while fixing the market price. For example -  Ferrari charges higher price for its red sports car in comparison to other colors offered.

Hence from the above we can conclude that the company is using value in use pricing strategy.