When shopping for tires for your automobile, you notice that the manufacturer you have selected has tires for your car priced low-, average-, and high-based upon performance and features. This is an example of what type of product-mix pricing?
A) product-line pricing
B) captive-price pricing
C) optional-feature pricing
D) by-product pricing
E) two-part pricing

Question

Quizplus · Accepted Answer

The manufacturer is pricing its product line of tires differently based on the performance and features, making it an example of product-line pricing. The prices are set according to the varying quality, characteristics, and benefits offered by the different sets of tires in the same product line.

When Shopping for Tires for Your Automobile, You Notice That