What pricing strategy is used by Namaste Solar when showing customers their savings on electric bills?

The chosen answer, value in use pricing, is considered correct because it focuses on the benefits and savings that customers experience when they adopt a product or service. In the context of Namaste Solar, this strategy emphasizes the long-term savings on electric bills that solar energy can provide. By showcasing how much money customers can save over time, the company effectively positions its offerings as a valuable investment rather than merely highlighting the upfront cost.

This approach contrasts with other pricing strategies. For instance, penetration pricing involves setting a low initial price to attract customers and gain market share, which is less applicable in a context where the emphasis is on savings rather than low prices. Premium pricing focuses on setting a high price to reflect exclusivity and high quality, which doesn't align with the goal of demonstrating savings. Cost-plus pricing involves adding a markup to the cost of the product, ensuring profitability without necessarily conveying value to the customer in terms of savings. Thus, value in use pricing is the most relevant approach for effectively communicating the financial benefits of solar energy to customers.