Cost-plus pricing
Product-line pricing
Differential pricing
Price leadership
Answer is Right!
Answer is Wrong!
The correct answer is: B. Product-line pricing
Product-line pricing is a pricing strategy where a company sets prices for a range of products in a way that reflects the different levels of demand for those products. This strategy is often used by companies that produce a large number of products, such as consumer goods companies or technology companies.
Product-line pricing can be a complex strategy to implement, as it requires the company to carefully consider the demand for each product in its lineup and to set prices that will maximize profits. However, it can be a very effective way to generate revenue and to attract customers.
Here is a brief explanation of each option:
- Cost-plus pricing is a pricing strategy where a company sets prices by adding a markup to its costs. This is a relatively simple pricing strategy to implement, but it can be less effective than other strategies, as it does not take into account the demand for the product.
- Differential pricing is a pricing strategy where a company charges different prices for the same product to different customers. This strategy can be used to segment the market and to maximize profits. However, it can be difficult to implement and can lead to customer dissatisfaction.
- Price leadership is a pricing strategy where a company sets the prices for its products and other companies in the industry follow those prices. This strategy can be effective in maintaining market share, but it can also lead to price wars.