When a marketer establishes a price floor and a price ceiling for an entire line of similar products and then sets price points in between for differences in quality among the products,he or she is using a __________ pricing approach.
A) market penetration
B) zone
C) price lining
D) loss leader
E) noncumulative quantity discount

Question

Quizplus · Accepted Answer

This is the definition of price lining, where the marketer establishes a range of prices for a line of products based on quality differences. Market penetration involves offering low prices to gain a large market share, while zone pricing involves dividing the market into geographic zones and charging different prices in each zone. A loss leader involves pricing a product below cost to attract customers to the store, and noncumulative quantity discounts involve offering discounts based on the quantity purchased.

When a Marketer Establishes a Price Floor and a Price