In an effort to differentiate its offerings from its competitors, Pegasus Computers decided to add an extra USB port in all its laptops besides providing a free pair of Delphi power bass headphones with every Pegasus laptop. Although the additional features increased the price of the laptops by $500, Pegasus was confident that the strategy would help boost demand for its laptops substantially. This is an example of ________.
A) good-value pricing
B) markup pricing
C) break-even pricing
D) value-added pricing
E) cost-based pricing

Question

Quizplus · Accepted Answer

This is an example of value-added pricing where Pegasus Computers is adding value to its laptops by providing an extra USB port and free pair of headphones, and charging a premium of $500 for these added features.

In an Effort to Differentiate Its Offerings from Its Competitors