When using a price lining strategy,a marketer will
A)set the price of a line of products at a number of different specific pricing points.
B)set price slightly higher than necessary to protect against losses resulting from adverse environmental forces.
C)adjust the price of a product so it is "in line" with the price of its largest competitor.
D)set a low initial price on a new product to appeal immediately to the mass market.
E)set a market price for product or product class based on a subjective feel for the competitors' price or market price as the benchmark.

Question

Quizplus · Accepted Answer

When using a price lining strategy, a marketer sets the prices of a line of products at different specific pricing points. This allows customers to choose products based on their pricing preferences, while still maintaining a level of perceived value. This strategy also helps the marketer to maximize profits and reduce the potential for cannibalization of sales within their own product line.

When Using a Price Lining Strategy,a Marketer Will