What pricing method focuses on the buyer's perceived value of a product?

The method that focuses on the buyer's perceived value of a product is correctly identified as consumer value-based pricing. This approach emphasizes understanding how much value a customer assigns to a product based on their needs, preferences, and perceived benefits. It is a strategy that enables businesses to set prices that reflect the value they deliver to consumers, potentially allowing for higher prices when the perceived value is strong.

In this context, businesses conduct market research to assess customer perceptions and willingness to pay, which helps in determining a price that not only covers costs but also aligns with customer expectations. This can enhance customer satisfaction and loyalty as consumers feel that they are receiving a fair price for the value they perceive in the product.

The other choices focus on different methodologies that do not primarily link pricing with perceived customer value. Cost-based pricing is centered on the costs of production, profit margins, and does not consider consumer perceptions directly. Value-based pricing might appear similar but emphasizes the specific benefits relative to competitive offerings instead of direct consumer perceptions. Target pricing involves setting a price based on market conditions and desired profit, also not directly relating to perceived value.