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Value-in-Use Pricing

a) The ownership costs for a business's products that extend the life of machine fluids appear in the first example. Assess the economic value for several price points and select a price that creates a meaningful value for customers.

b) In this example, let's assume that the usage cost for the business's product is further reduced to $2.50 per pound. How would this affect customer value and the perception of the value price of $2.45?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92174160

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