Question

question 4 (multiple choice worth 5 points)
(03.05r lc)
which of the following pricing techniques involves separating products or services into cost categories to create levels of perceived quality?

• bundling
• product line pricing
• promotional discount
• quantity discount

Explanation:

• Bundling: Sells multiple products together as a package, not about tiered cost/quality categories.
• Product line pricing: Groups products/services in a line into different price tiers based on cost and perceived quality levels, matching the description.
• Promotional discount: Temporarily reduces prices for marketing purposes, not related to tiered quality/cost categorization.
• Quantity discount: Reduces price for larger purchase volumes, not about perceived quality tiers.

Answer:

B. Product line pricing