Marketing 12th Edition by Charles Lamb,Charles Lamb,Joe Hair

Exercise 6

Setting the right price is one of the most challenging aspects of a marketer's job. How high a price will the market bear? What kind of message does the price communicate? How flexible can our price be? The answer to those and a multitude of other questions relating to price vary by industry, by product categories within an industry, and even by brand and store.

This video shows you a wide range of pricing issues and concerns facing new brands, like method, ReadyMade Magazine, and Acid+All, and established brands, like Sephora and Vans. There are both similarities and differences in the tools each company uses to set and fine-tune its base price. One idea, however, unifies all of the companies: pricing is a considered strategy, not an afterthought.
Does it make sense for method to use product line pricing? Why or why not?