True or False: In cost-based pricing, the list price is determined by estimating what customers are willing to pay for a product and then backing off a bit to provide a cushion

Marketing Dec 20, 2020

True or False: In cost-based pricing, the list price is determined by estimating what customers are willing to pay for a product and then backing off a bit to provide a cushion.

Expert Solution

In cost-based pricing, the list price is determined by estimating what customers are willing to pay for a product and then backing off a bit to provide a cushion. -- False

Explanation:

Cost-based pricing is a pricing method in which price is decided by adding a profit percentage in addition to the cost of making the product.

Value-based method of pricing is a pricing method in which the list price is determined by estimating what customers are willing to pay for a product and then backing off a bit to provide a cushion.

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