Tone Zone plans to introduce four mp3 player models over the next year. These models range from basic players at $99 per unit, to more sophisticated players at $399 per unit. The more features a model has, the more expensive it is. What pricing strategy is Tone Zone using for its range of mp3 players?
A) product line pricing
B) product bundle pricing
C) captive product pricing
D) by-product pricing
E) optional product pricing

Question

Quizplus · Accepted Answer

Tone Zone is using product line pricing, which involves setting prices for a group of products that are closely related and intended to be sold together. In this case, the range of mp3 players offered by Tone Zone are all part of the same product line, but vary in price based on the features and sophistication of each model. This allows customers to choose the model that best fits their needs and budget, while still maintaining a consistent pricing strategy across the product line.

Tone Zone Plans to Introduce Four Mp3 Player Models Over