A luxury car manufacturer sets the price of its new model significantly higher than competitors because it offers exclusive features, superior craftsmanship, and personalized service. What is the primary challenge the company faces when using a value-based pricing strategy?
1
Estimating the actual cost of production.
2
Convincing customers that the price matches the perceived value.
3
Monitoring competitor pricing continuously.
4
Reducing overhead costs to match customer expectations.
5
Maximizing short-term profits instead of long-term value.