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 these alternatives are correct.

Question

Quizplus · Accepted Answer

Price lining is a strategy in which products are grouped into specific price points, making it easier for both buyers and sellers to understand the pricing structure. This can simplify the buying process for consumers, as they can quickly identify which products fit within their budget. Similarly, it can simplify the selling process for retailers, as they can focus on selling products within specific price ranges. However, price lining does not necessarily result in reduced turnover rates or larger inventories, and it is not the same as prestige pricing (which is a strategy of pricing products high in order to convey a sense of exclusivity or luxury).

Price Lining