CLEP Marketing Practice Exam 2025 – All-in-One Guide to Achieve Top Scores!

The chosen answer highlights a pricing strategy that is centered specifically around how consumers perceive the value of a product or service. Value in use pricing emphasizes the benefits and advantages that customers derive from a product, and sets the price based on the perceived value that the consumer believes they will receive through its use. This strategy is particularly effective in markets where the value to the customer can far exceed the cost to produce the good or service.

In contrast, cost-plus pricing involves setting a price based on the costs of production plus a fixed margin, which does not take consumer perception into account. Similarly, competition-based pricing focuses on setting prices in relation to competitors, rather than consumer perceptions of value. Dynamic pricing revolves around adjusting prices in real-time based on demand and supply conditions, which may not solely align with perceived customer value. Therefore, value in use pricing stands out as a strategy that prioritizes understanding and leveraging consumer perception in determining price.