“	Demand-based pricing is any pricing method that uses consumer demand, based on perceived value, as the central element. These include: price skimming, price discrimination and yield management, price points, psychological pricing, bundle pricing, penetration pricing, price lining, value-based pricing, geo and premium pricing. Pricing factors are manufacturing cost, market place, competition, market condition, and quality of product.	”
—Saylor, Demand-based Pricing

Reading

Read this page on Demand-based Pricing which gives an overview of how customer demand impacts the price point for products and services based on:
- significant effects of demand and competition on price,
- how economic concepts of substitution and elasticity impact price, and
- the psychology of pricing.
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- “Demand-based pricing is important because …”

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PMKT101