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In value in use pricing, what aspect is primarily evaluated?

Customer's expected price

How much a customer saves through a product

Value in use pricing focuses on the benefits that a customer derives from using a product, specifically how much they save or gain in terms of value. This method assesses the economic advantages a customer receives from using the product compared to not using it, which can include cost savings, increased efficiency, or enhanced performance.

By emphasizing the savings through a product, this pricing strategy aims to align the price with the perceived value it offers to the customer. The idea is that if a customer sees substantial value in the savings or benefits, they will be more inclined to purchase the product even at a higher price point. This approach centers the pricing strategy on the customer's experience and the value delivered rather than solely on production costs or market competition, making it particularly effective in industries where the benefits of the product can be clearly quantified.

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Product production costs

Market competition

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