Answer :
Final Answer:
Value-based pricing is the process of establishing the price of a product based on consumers' perception of value, hence option (B) is correct.
Explanation:
Using​ consumers' perception of value as the basis for establishing the price of a product is referred to as​ Value-based pricing. Value-based pricing reflects the fact that different consumers will generally place different valuations on the product. As price declines, more consumers will find it attractive to participate in the market.
For example, let's say a company manufactures a high-quality smartphone with advanced features. Through market research, they find that consumers value the durability, camera quality, and user-friendly interface of the smartphone. Based on this information, the company can set a higher price for the smartphone, reflecting the perceived value customers associate with the product's features.