When marketers establish a price floor and a price ceiling for an entire line of similar products and then set price points in between for differences in quality among the products,they are using a _______ pricing approach.
A) loss leader
B) zone
C) price bundling
D) price skimming
E) price lining

Question

Quizplus · Accepted Answer

The pricing approach described here is called price lining, where the marketers establish a range of prices for a line of similar products with a price floor, a price ceiling, and intermediate price points for varying quality levels. This approach is often used by retailers for products such as clothing, electronics, and appliances.

When Marketers Establish a Price Floor and a Price Ceiling