In product line pricing, price steps should account for differences in customer perceptions of the value of different features.

Question

Quizplus · Accepted Answer

Product line pricing is the practice of setting prices for an entire product line, with different price points for different products within the line. Price steps should be based on the perceived value of each product to different customer segments. Customers are willing to pay more for products that offer more features, so the price should reflect the perceived value of those features. Therefore, price steps should account for differences in customer perceptions of the value of different features.

In Product Line Pricing, Price Steps Should Account for Differences