When Asia Electronics sets its televisions at three price levels of $699,$899,and $1,099,it is using ________.
A) product line pricing
B) market-skimming pricing
C) market-penetration pricing
D) break-even pricing
E) target return pricing

Question

Quizplus · Accepted Answer

Product line pricing involves setting prices for a range of products within the same category, such as a range of televisions. By setting three different prices for televisions, Asia Electronics is using product line pricing. Market-skimming pricing involves initially setting high prices for a new product, while market-penetration pricing involves setting low prices to quickly penetrate the market. Break-even pricing involves setting prices to cover the costs of producing and selling the product, while target return pricing involves setting prices to achieve a specific target profit. Neither of these strategies seem to apply to the scenario given.

When Asia Electronics Sets Its Televisions at Three Price Levels