Why is price lining is a valuable tactic for marketing managers?
A)Price lining results in a greater inventory carrying charge.
B)A company that uses price lining is able to carry a smaller total inventory and reduce confusion for its customers.
C)A company that uses price lining has more price markdowns and greater markup.
D)The price lining strategy allows the company to gain brand loyalty from its targeted segments.

Question

Quizplus · Accepted Answer

With price lines,a retailer can choose to carry a smaller inventory because it wants to offer products at certain price levels but not at every possible point of the price scale.

Why Is Price Lining Is a Valuable Tactic for Marketing