Which of the following is true of product line pricing?
A) The price steps take cost differences between products in the line into account.
B) The pricing strategy cannot be availed of by companies in developed countries.
C) The price steps do not account for the prices of similar products from competitors.
D) The pricing strategy involves overpricing products so that they appeal to the elite.
E) The customer's perception of the value of different features is considered irrelevant.

Question

Quizplus · Accepted Answer

Product line pricing takes into account cost differences between products in the line, and prices each product accordingly. This strategy helps to maximize profits while also offering customers a range of options at different price points. The other options are all incorrect. B is incorrect because product line pricing is applicable to companies in any country. C is incorrect because competitive pricing is a key consideration in product line pricing. D is incorrect because overpricing products does not lead to increased appeal to the elite. E is incorrect because the customer's perception of the value of different features is a key consideration in product line pricing.

Which of the Following Is True of Product Line Pricing