Which method is primarily concerned with the pricing strategy for services offered by a business?

The primary method concerned with establishing the pricing strategy for services offered by a business is price determination. This involves the process of setting prices based on various factors such as costs, competition, market demand, and perceived value of the service. Price determination encompasses a broad range of strategies and considerations that companies must evaluate to arrive at an effective pricing point that meets their business objectives and appeals to their target market.

While value-based pricing focuses specifically on the perceived value of the service to the customer—taking into account how much a customer is willing to pay—price determination is a more comprehensive approach that includes assessing costs and competitive pricing, thus making it a foundational element of overall pricing strategy. The freemium model refers to offering basic services for free while charging for advanced features, which is a specific pricing strategy rather than a method of price determination. Break-even analysis is a financial tool used to determine the point at which total revenue equals total costs, helping businesses understand when they will start to make a profit, but it does not directly set pricing strategy for services.