A product's perceived value represents the maximum price the B2B vendors may charge the B2B customer. Usually, B2B vendors will not go for this maximum price but charge a price that is perceived as reasonable by both parties. 

Analyse how the cost-based, value based, and competition based pricing strategies interact with each other in the pricing decision process?  Discuss the situations in which vendors can charge maximum price.

Answer rating: 100% (QA)

CostBased Pricing Explanation Costbased pricing involves setting the price based on the production costs including direct costs materials labor and overhead Interaction Costbased pricing provides a ba... View the full answer