Problems in demand-based pricing:
(a)Â Â Â Â Â Â There is an element of non-monetary costs and benefits which must be considered while calculating perceived value. E.g. services requiring time, inconvenience, psychological and search costs should be priced lower. It is difficult to convert this non-monetary cost into monetary cost.
(b)Â Â Â Â Â Â Information on service may be less available to customer, making it difficult to assess the price.
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