At the Greenville Florist, there are four different prices for funeral bouquets. The smallest bouquet sells for $30; there is also a $40 version and a $75 version. For those who want to express their grief through the purchase of a dramatic floral arrangement, the florist also offers a $150 value. Why has the owner of the florist shop chosen price lining?
A)It will enable the shop to carry a larger total inventory.
B)It will maintain all of the product line at the same stage in the product life cycle.
C)It will confuse customers and allow salespeople to sell more of the expensive models.
D)It will reach several different target market segments.

Question

Quizplus · Accepted Answer

Price lining allows the shop to offer different options at different price points, which can appeal to a variety of target market segments with varying budgets or preferences for the size and extravagance of funeral arrangements. This can potentially increase sales and revenue.

At the Greenville Florist, There Are Four Different Prices for Funeral