Which of the following is true of optional-product pricing?
A) It involves capitalizing on low value by-products.
B) It involves pricing products that can be added to the base product.
C) It is used to price a company's main product.
D) It involves setting geographically specific prices.
E) It is used to price products that must be used with the company's main product.

Question

Quizplus · Accepted Answer

Optional-product pricing involves pricing products that can be added to the base product. This is done to provide additional value to customers who are willing to pay more for the extra features or benefits. For example, a car manufacturer might offer a base model car at a low price, but then charge extra for features such as a premium sound system or leather seats. This can help the company maximize revenue and appeal to a wider range of customers with different levels of willingness to pay.

Which of the Following Is True of Optional-Product Pricing