Saffron Spas Inc.has two membership schemes meant to attract different customer segments.The executive membership program priced at $1000 allows for unlimited usage of the services available in the spa chain up to a year.The premium membership program priced at $700 allows for limited usage of the spa services up to a year.According to this information,which of the following pricing strategies is adopted by Saffron Spas Inc.?

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Quizplus · Accepted Answer

Saffron Spas Inc. is using price lining, which involves offering different versions of a product or service at different price points to cater to different customer segments. Here, they have two membership schemes at different prices.