value-in-use pricing - Business Definition
Establishing a price based on a product's value to the customer as opposed to the manufacturer's cost of production. This method of pricing is effective only when consumers have no effective substitutes. For example, a pharmaceutical company may price a specialty cancer drug at a very high level, regardless of the firm's cost of production, based on the drug's value to the limited number of people who have few alternatives. On the other hand, aspirin, which has a very high value for many people, is typically sold at a low price because of competitive pressures.