5 Questions
What makes service pricing strategy different and difficult?
It is harder to calculate financial costs of creating a service process or performance than a manufactured good
What is the main focus of value-based pricing?
Relating price to the value perceived by the customer
What is the significance of activity-based costing (ABC) in service pricing?
It relates price to value perceived by the customer
How is perceived value defined in service pricing?
The consumer’s overall assessment of the utility of a service based on perception of what is received and what is given
What do low-cost carriers emphasize as the most important component of value?
Emphasize the benefits they receive from service as the most important component of value
Explore the challenges and strategies of pricing services, including the difficulty in calculating financial costs, customer perceptions, and the importance of time in service value. Understand the objectives for pricing service offerings and the unique aspects of service pricing strategy.
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