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 involves setting a limited number of prices for certain categories of products. For example, a clothing store may have a line of shirts that are all priced at $25, a line of sweaters that are all priced at $50, and a line of jackets that are priced at $100. This simplifies the buying process for customers and makes pricing more transparent.

Which of the Following Pricing Strategies BEST Describes Price Lining