Evian prices a 1.4-litre bottle of its mineral water at $.200 and 50 mL of the same water in a moisturizer spray at $6.00. With which of the following types of pricing are different versions of the product priced differently but not proportionately to their respective costs?
A) customer-segment pricing
B) channel pricing
C) location pricing
D) product-form pricing
E) new product pricing

Question

Quizplus · Accepted Answer

This scenario illustrates product-form pricing, where different versions of the same product are priced differently based on the form they are offered in. In this case, the 1.4-litre bottle and moisturizer spray contain the same Evian mineral water, but are priced significantly differently. This type of pricing is not proportional to the respective costs of the versions, as the moisturizer spray likely has additional production costs that the bottle does not. Customer-segment pricing involves different prices for different customer groups, channel pricing involves different prices for different distribution channels, location pricing involves different prices for different geographic locations, and new product pricing involves pricing strategies for newly launched products.

Evian Prices a 1