When Circuit Town Electronics sets its televisions at three price levels of $699,$899 and $1099,it is using ________.
A)product line pricing
B)market-skimming pricing
C)market-penetration pricing
D)breakeven pricing
E)target return pricing

Question

Quizplus · Accepted Answer

Product line pricing is the strategy of setting different price points for products within the same product line based on factors such as features, quality, and target market. In this case, Circuit Town Electronics is using product line pricing by setting different price levels for its televisions. Market-skimming pricing involves setting a high price initially to capture the most revenue possible before competition enters the market. Market-penetration pricing involves setting a low price initially to gain market share quickly. Breakeven pricing involves setting a price that covers all production and marketing costs but does not generate a profit. Target return pricing involves setting a price that will provide a specific return on investment. None of these strategies are being used in the given scenario.

When Circuit Town Electronics Sets Its Televisions at Three Price