Sparkling Valley, a luxury resort, prices cottages facing the lake higher than cottages that do not, even though the cottages and services offered are identical in every other aspect. This form of pricing is called ________ pricing.
A) location-based
B) time-based
C) by-product
D) seasonal
E) captive product

Question

Quizplus · Accepted Answer

Location-based pricing is when prices are based on the location of the product or service, which is the case for Sparkling Valley pricing their lake-facing cottages higher. Time-based pricing would be based on the time of day or year, by-product pricing would be when the value of a secondary product is added to the main product, seasonal pricing would be based on the season, and captive product pricing would be when a product necessitates the purchase of another product.

Sparkling Valley, a Luxury Resort, Prices Cottages Facing the Lake