When NerdHerd 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

NerdHerd Electronics is setting different prices for its televisions based on their placement within its product line. This is known as product line pricing, as the prices are being set based on the different features and benefits of each television model. Market-skimming pricing would involve setting a high price initially and then gradually lowering it, while market-penetration pricing would involve setting a low price initially to penetrate the market. Break-even pricing and target return pricing are both cost-based pricing strategies. They are not applicable in this scenario as there is no mention of costs or profit targets.

When NerdHerd Electronics Sets Its Televisions at Three Price Levels