Value-based pricing requires the estimation of the economic value of a good. For this, estimating differentiation value becomes important: to what extent does a product or service provide additional value to a consumer? Estimating differentiation value requires strategic approaches towards measuring monetary and psychological value that we will investigate in the following.
economic value estimation
Value-based pricing is, as the name suggests, based on the value a good provides to a customer. The value at the heart of pricing strategy is economic value (or exchange value), not…