Question

Annie Clarke owns a smartphone app development firm. The way Annie prices her products is to determine what consumers are willing to pay, and then she backs off a bit to provide a cushion. The method that Annie used to determine her prices is called ________ pricing.

Answer 1

Answer:

Value-based pricing  is the correct answer.

Explanation:

Value-based pricing is a strategy used by businesses to set the price of the product and service based on the value it gives to the clients.

This strategy is successful when the services are marketed based on fashion, in the shortages and niche businesses.

This price technique helps the companies and businesses improve the profits by knowing the maximum price the client is ready to give.