Price lining can simplify both buying and selling by offering a range of prices for products at different levels of quality or features. It may not necessarily reduce turnover rates or result in larger inventories, and it is not the same as prestige pricing which involves setting a high price to create an image of luxury or exclusivity.

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Price Lining

Question 244

Multiple Choice

Price lining:

A) is quite similar to prestige pricing.
B) can simplify both buying and selling.
C) tends to reduce turnover rates.
D) results in larger inventories.
E) All of the above.

Correct Answer: