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



  1. 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.
  2. Post a WEnote to share your thoughts about the importance of customer demand-based pricing, and read the posts from others on the Course Feed page. For example:
    • “Demand-based pricing is important because …”

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