A business using price lining is doing which of the following?
A) trying to avoid the use of psychological pricing, which may be negatively received by customers
B) trying to recoup its research and development costs for a new product
C) attempting to attain a large market share before any competitors can enter the marketplace
D) creating different prices for different products within a product line
E) engaging in potentially unethical pricing

Question

Quizplus · Accepted Answer

A business using price lining is creating different prices for different products within a product line, typically based on differences in quality or features. This allows customers to choose from a range of options at different price points, without the need for psychological pricing tactics. Price lining can also help businesses differentiate their products and recoup their costs for developing and producing different products within a product line. However, unethical pricing practices could also potentially be used within price lining, so option E cannot be completely ruled out.

A Business Using Price Lining Is Doing Which of the Following