What term describes the strategy of setting prices based on market demand and consumer behavior?

The term that accurately describes the strategy of setting prices based on market demand and consumer behavior is Demand Oriented Pricing. This approach focuses on understanding how much consumers are willing to pay for a product or service, allowing businesses to adjust their prices accordingly to optimize sales and revenue.

Demand Oriented Pricing involves analyzing various factors, including consumer preferences, market trends, and competitor pricing. By aligning prices with the perceived value and demand, businesses can effectively attract and retain customers. This strategy is responsive to changes in consumer behavior and can help a business remain competitive in a dynamic market environment.

In contrast, other pricing strategies like Value Pricing emphasize offering products at a low-cost relative to perceived value, Cost Plus Pricing involves determining prices by adding a fixed percentage to the cost of production, and Premium Pricing is about setting high prices to reflect exclusivity and high quality. These methods do not primarily focus on the direct relationship between pricing and consumer demand as Demand Oriented Pricing does.