Which of the following best describes attribute-based pricing?

Attribute-based pricing is a pricing strategy that involves determining the price of a product based on its specific features or characteristics. This approach recognizes that different attributes of a product can appeal to various customer segments and can justify different price points. For instance, a consumer might be willing to pay more for additional features such as enhanced quality, unique designs, or specific capabilities that address their needs. By focusing on these unique attributes, businesses can tailor their pricing strategies to maximize revenue based on the perceived value of these features to the customer.

In contrast, setting a uniform price for all customers does not take into account the various values that different attributes might hold for different consumers. Pricing based on customer demographics also fails to acknowledge the unique characteristics of the product itself. Similarly, offering bulk pricing discounts addresses price adjustments for quantity but does not pertain to the specific attributes of the product that affect its value. This distinction is what makes attribute-based pricing a nuanced and effective approach in many pricing scenarios.