Bose prices its most expensive noise reduction earphones at $399.95,which is a full $100.00 more than its next most expensive earphones.It costs Bose only a few dollars more to make the most expensive earphones.Bose is using ________ pricing.
A) customer-segment
B) product-form
C) promotional
D) penetration
E) captive product

Question

Quizplus · Accepted Answer

Bose is using product-form pricing, which involves pricing products based on their level of features, quality, and performance. The most expensive earphones offer superior noise reduction technology compared to the next most expensive earphones, justifying the higher price. This strategy aims to capture value-conscious customers who are willing to pay a premium for high-quality products.

Bose Prices Its Most Expensive Noise Reduction Earphones at $399