True of the value-in-use pricing method

Assignment Help Operation Management

Reference no: EM131435775

Which of the following is true of the value-in-use pricing method?

The product price is set to provide customers with an attractive savings after considering the life-cycle costs of the product.

The cost of making a product and the desired profit margin are the two primary determinants in setting a value-in-use price.

Price is set by unbundling a product's features, placing a price on each, and then allowing customers to select the features they want at a price that they are willing to pay.

It considers neither what the buyer would be willing to pay for product performance nor the cost of other similar products in the market.

Price is set on the basis of the value that customers realize when they compare the price and benefits of the company's product with those of a key competitor's product.

Reference no: EM131435775

Questions Cloud

Describe the current health care environment : Describe the current health care environment in the United States from both the health care administrator and the patient perspective. What are some recent changes in legislation and how does this change influence the way that an administrator would ..

Forecasting with multiple regression models : What are some of the issues relevant to forecasting with multiple regression models? Just because a multiple regression model is statistically significant, does that mean it will do a good job forecasting? Because we are now dealing with a statistica..

Explain relationship between rbv assumptions and value chain : What is an example of a Type I error? Say that the null hypothesis is that there is no difference in the efficacy of a new drug and a placebo? Discuss which groups may benefit from this approach and which groups would benefit from the completion of t..

Machine indicates to be defective is in fact satisfactory : A machine to detect improper welds in a fabricating shop detects 80 percentage of all improper welds but it also incorrectly indicates an improper weld on 5 percentage of satisfactory welds. Past experience indicates that 10 percentage of all welds a..

True of the value-in-use pricing method : Which of the following is true of the value-in-use pricing method? The product price is set to provide customers with an attractive savings after considering the life-cycle costs of the product. The cost of making a product and the desired profit mar..

Service requirements tend to be more time dependent : Compared to manufacturing, service requirements tend to be more time dependent, location dependent, and volatile. In addition, service quality is often directly observable by customers. Find a recent article in a business magazine that describes how ..

Most important factors regarding initial selection methods : Identify and analyze the most important factors regarding initial selection methods; and how effective are these methods. Assess the reliability and validity of these methods; and validity of these methods; determine what tools are are available to h..

Assume the inter-arrival rate for incoming calls : Assume the inter-arrival rate for incoming calls during a 1-hour period is 11.0476 minutes. The average service tie on each call is 3 minutes. If there is only one phone operating during the 1-hour period, how busy would the phone be? Also, assume th..

Describe the types of social entrepreneurship : Describe the types of social entrepreneurship. Are you familiar with any organizations that promote this? Is Forced Ranking an Effective Performance Management Approach? Explain fully and give three examples. What is a net promoter score and how is i..

User Account

All Pages