Tostitos Photo
-Consider the Tostitos products photo above.Frito-Lay recognizes that its tortilla chip products are partial substitutes for one another.The company's bean and cheese dips and salsa sauces complement its tortilla chips.Frito-Lay uses this knowledge to set prices for each item,which is known as

Question

Quizplus · Accepted Answer

Frito-Lay is using product-line pricing, where it sets different prices for its tortilla chip products based on their perceived quality and features, and complements them with its bean and cheese dips and salsa sauces to create a complete product line. Product-line pricing is common in industries where companies offer a range of related products that satisfy different customer needs, and it helps companies capture more of their customers' value by encouraging them to purchase more items in the same product line.

Tostitos Photo -Consider the Tostitos Products Photo Above.Frito-Lay Recognizes That Its Tortilla