Setting prices based on buyers’ perceptions of value rather than on the seller’s cost is known as:

Explanation

* Value-Based Pricing uses buyers’ perceptions of value as the primary key to pricing, rather than production and distribution costs.
* Cost-plus adds markup to production costs; Target return prices for a set profit rate; Competition-based matches market benchmarks.
* Value-based pricing requires deep understanding of customer willingness to pay and competitive alternatives.