A business that uses price lining is ________.
A)attempting to attain a large market share before any competitors can enter the marketplace
B)trying to avoid the use of psychological pricing that may be adversely received by customers
C)trying to recoup its research and development costs for a new product
D)using price points to determine its pricing strategy
E)potentially in legal trouble unless it can justify the practice

Question

Quizplus · Accepted Answer

A business that uses price lining is using predetermined price points to determine their pricing strategy. This means that they offer different products at different price levels, but they always maintain the same price for each product within a certain price range. It is a common pricing strategy used by retailers to simplify the pricing structure and make it easier for customers to make purchasing decisions.

A Business That Uses Price Lining Is ________