In pricing, a product cost works as a floor and customer perception of the value of a product works as a guide to

price a product. Explain why it is a good idea to price a product according to the value perception of the customers. 

Also, give some examples of products in which the company has used the value-based pricing technique.

The reasons why it is a good idea to price a product according to the value perception of the customers are explained below. These includes; it makes a company to develop higher quality products and to be customer focused. It also makes a company to establish an open communication channel with its customers and thus build strong relationships with them. Examples of products in which the company has used the value based pricing techniques is also shown below

Step-by-step explanation

Explain why it is a good idea to price a product according to the value perception of the customers. 

Pricing a product according to the value perception of the customers helps a company to develop higher quality products (Campbell, 2021). It makes a company research on what customers value most, taking on the customer perspectives in order to know what the customers want and as a result they tend to improve their products (Campbell, 2021)

 It is a good idea because it enables the company to be customer focused which means that any improvements and added characteristics of the product or service are based on the customers' needs and wants ("Valuing Value-Based Pricing", 2021). This makes the products to be of high quality in order to be successful in using this pricing strategy.

Pricing product according to the value perception of the customers is a good idea because it makes a company to establish an open communication channel and thus build strong relationships with its customers ("Valuing Value-Based Pricing", 2021). This enables the company to receive feedback from the customers about the features that they want and also about how much that they are willing to pay.

It enables a company to be able to use a segmented approach toward price which considers how each group of customers assesses value ("Reading: Benefits of Value-Based Pricing | Principles of Marketing - Candela", 2021). This will give the company a better understanding of what the customers' value and expects and how the customers evaluate price.

Value pricing of a product enables a product or service to distinguish itself from competition.

Pricing a product according to the value perception of the customers is good idea to be used where possessing an item enhances a customers' self image ("Valuing Value-Based Pricing", 2021).

Also, give some examples of products in which the company has used the value-based pricing technique.

An example is in the fashion industry ("Valuing Value-Based Pricing", 2021). Brands that have popular names in the fashion industry have higher prices and this is based on the customers' perceptions of how the brand affects their image ("Valuing Value-Based Pricing", 2021).

The perceived value of a designer brand in the fashion industry will rapidly increase if a designer can be able to persuade an A-list celebrity to wear his or her look when attending a red carpet event ("Valuing Value-Based Pricing", 2021).

Other examples of products where the companies have used the value based pricing technique include; pharmaceuticals, cosmetics and personal care ("Valuing Value-Based Pricing", 2021)