Willingness-to-Pay (WTP) in Marketing
In designing a pricing strategy, the basis is to set the prices for the goods in view of how much the customers are willing to pay for each of the goods. It is important for the marketer to predict how many of the offered products will be bought at different prices. To predict the demand for different products at different prices the marketer needs a profound understanding of the reaction of his or her customers to different pricing schedules.
KeywordsConsumer Surplus Reservation Price Reference Product Sales Price Product Class
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