Read the situation below and answer the questions given:

Dell is trying to promote its range of laptops to Ahmad. The main objective of Dell is to produce low price and profitable PCs for the customers. Dell products are so customisable, the price is largely dependent on the options and services added to the product. That means, the more features Ahmad wants for his laptop, the more he will have to pay.

Based on the marketing situation above, answer the following questions:

1. Is this company using Value-Based Pricing or Cost-Based Pricing? Explain how you made the distinction. (15 Marks)

2. Describe the major differences between Value-Based Pricing and Cost-Based Pricing. (10 marks)