Which of the following is true of product line pricing?
A) The price steps take cost differences between products in the line into account.
B) The pricing strategy cannot be used by companies in developed countries.
C) The price steps do not account for the prices of similar products from competitors.
D) The pricing strategy involves overpricing products so that they appeal to the elite.
E) The customer's perception of the value of different features is considered irrelevant.

Question

Quizplus · Accepted Answer

Product line pricing involves setting prices for different products in a product line based on their cost differences. Therefore, price steps take these cost differences into account.

Which of the Following Is True of Product Line Pricing