A car maker's strategy of advertising a basic vehicle model with few conveniences and comforts at a low price to entice buyers and then convincing customers to buy higher- priced models with more amenities is an example of which of the following?
A)captive product pricing
B)allowance pricing
C)optional product pricing
D)product line pricing
E)segmented pricing

Question

Quizplus · Accepted Answer

Optional product pricing is a pricing strategy in which a basic product is offered at a low price, and then customers are encouraged to buy additional options or features at a higher price. This is the strategy described in the question, where the car maker offers a basic vehicle model at a low price and then convinces customers to buy higher-priced models with more amenities.

A Car Maker's Strategy of Advertising a Basic Vehicle Model