Of the following 5 most common pricing strategies, explain why Value-based pricing would be the best pricing strategy when establishing a new business (Increased brand value; Higher profit margin; Customer loyalty):
1. Cost-plus pricing. Calculate your costs and add a mark-up.
2. Competitive pricing. Set a price based on what the competition charges.
3. Price skimming. Set a high price and lower it as the market evolves.
4. Penetration pricing. Set a low price to enter a competitive market and raise it later.
5. Value-based pricing. Base your product or service's price on what the customer believes it's worth.