What is a demand based pricing strategy?

Asked by John McDaid on March 22nd, 2012 @ 4:36 a.m.
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Demand-based pricing strategies are any pricing methods that uses a consumer's perception of perceived value as the core tenant of a pricing strategy.  Put another way, this pricing strategy plays on a consumer's reactions and perceptions.

One example of this is premium pricing - where goods are given the highest price possible because a consumer attaches certain positive associations with high price (namely status and quality), without relation to the actual cost of manufacturing.

Answered by Tak Lo on April 30th, 2012 @ 6:56 a.m.