Which of the following pricing strategies best describes price lining?
A) Setting an initial low price to establish a new product in the market
B) Setting an initial high price to cover new product costs and generate a profit
C) Setting individually negotiated prices for certain categories of products
D) Setting a limited number of prices for certain categories of products
E) Setting individually negotiated prices for all categories of products

Question

Quizplus · Accepted Answer

Price lining is the strategy of setting a limited number of prices for certain categories of products. This allows customers to easily compare prices within a category and simplifies the pricing process for the company. It also creates a sense of value for customers who may be willing to pay a little extra for a higher-priced option.

Which of the Following Pricing Strategies Best Describes Price Lining