Which of the following pricing strategies best describes price lining?
A) setting an initial low price to establish a new product in the market
B) setting an initial high price to cover new product costs and generate a profit
C) setting individually negotiated prices for certain categories of products
D) setting a limited number of prices for certain categories of products
E) setting individually negotiated prices for all categories of products

Question

Quizplus · Accepted Answer

D) Price lining is illustrated when a retailer offers sweatshirts at three amounts: $25, $35, and $50. The ranges in price likely indicate varying quality levels.

Which of the Following Pricing Strategies Best Describes Price Lining