demand-oriented pricing

Method of establishing the price for a product or service based on the level of demand; also called demand-based pricing. For example, sellers of compact discs charge a higher price for recordings that appeal to a broad market, such as those of Garth Brooks or Madonna, than they charge for recordings of classical music. The manufacturing cost of the product and the required gross profit margin are of secondary importance to demand in setting the price. See also elasticity; demand; going-rate pricing.