Answer:
At the price consumers are willing to pay
Explanation:
For an organization that is just launching a new product, value based pricing which is a strategy that sets price for a product based on what customers think the product or service is worth, rather than actual costs and allows for the consumer to buy the products at the price they are willing to pay. This is determined through market testing and a price is set based on this value. For example, sometimes consumers will pay more for a product if it saves them a lot of time. Value based pricing which allows for the consumer (to buy based on their percieved value for the product and how much they are willing to pay) is a fundamental business activity of developing product strategies and pricing them properly to establish the product within the market.
This concept of pricing is key for a relatively new product within the market, because without the correct price, there would be no sale as setting a price for an average product would be negative on the business as consumer would not buy and setting a low price on a luxury product would likewise have an negative effect as in the long run, the organization may run at loss and business would not be profitable.
