Answer (C) is correct . Buyer-based pricing involves basing prices on the product’s perceived value rather than on the seller’s cost. Nonprice variables in the marketing mix augment the perceived value. For example, a cup of coffee may have a higher price at an expensive restaurant than at a fast food outlet.
Answer (A) is incorrect because Adding a standard markup to the cost of the product is cost-plus pricing.
Answer (B) is incorrect because Determining the price at which the product will earn a target profit is target profit pricing.
Answer (D) is incorrect because Basing prices on competitors’ prices is going-rate pricing.
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