The buyer’s perception of total value prompts the willingness to pay a particular price for a service. To translate the customer’s value perceptions into an appropriate price for a specific service offering, the marketer must answer a number of questions: What benefits does the service provide? How important is each of these benefits? How much is it worth to the customer to receive a particular benefit from a service? At what price will the service be economically acceptable to potential buyers? In what context is the customer purchasing the service? T he most important thing a company must do—and often a difficult thing—is to estimate the value to customers of the company’s services. 13 Value may be perceived differently by consumers because of idiosyncratic tastes, knowledge about the service, buying power, and ability to pay. In this type of pricing, what the consumers value— not what they pay—forms the basis for pricing. Therefore, its effectiveness rests solely on accurately determining what the market perceives the service to be worth. W hen the services are for the retail consumers, service providers can rarely afford to give each individual exactly the bundle of attributes valued. They will, however, attempt to find one or more bundles that address segments of the market. When individual customers are large (e.g., business-to-business customers or very large and profitable retail customers), the company may find it worthwhile to provide individual bundles to each customer. An interesting manifestation of demand-oriented pricing is shown in the Technology Spotlight. The buyer’s perception of total value prompts the willingness to pay a particular price for a service. To translate the customer’s value perceptions into an appropriate price for a specific service offering, the marketer must answer a number of questions: What benefits does the service provide? How important is each of these benefits? How much is it worth to the customer to receive a particular benefit from a service? At what price will the service be economically acceptable to potential buyers? In what context is the customer purchasing the service? T he most important thing a company must do—and often a difficult thing—is to estimate the value to customers of the company’s services. 13 Value may be perceived differently by consumers because of idiosyncratic tastes, knowledge about the service, buying power, and ability to pay. In this type of pricing, what the consumers value— not what they pay—forms the basis for pricing. Therefore, its effectiveness rests solely on accurately determining what the market perceives the service to be worth. W hen the services are for the retail consumers, service providers can rarely afford to give each individual exactly the bundle of attributes valued. They will, however, attempt to find one or more bundles that address segments of the market. When individual customers are large (e.g., business-to-business customers or very large and profitable retail customers), the company may find it worthwhile to provide individual bundles to each customer. An interesting manifestation of demand-oriented pricing is shown in the Technology Spotlight.