Price lining involves ________.
A) setting an initial low price to establish a new product in the market
B) setting a limited number of prices for certain categories of products
C) setting prices in uneven dollar amounts
D) setting an initial high price to cover new product costs and generate a profit.

Question

Quizplus · Accepted Answer

Price lining involves setting a limited number of prices for certain categories of products. For example, a clothing retailer may have a "budget" line with lower-priced items, a "premium" line with higher-priced items, and a "mid-range" line with prices in between. This strategy can help customers understand the value and quality of each category and make purchasing decisions more easily.

Price Lining Involves ________