12 Product-line pricing strategy A product line is a range of products that are intended to meet similar needs of different target audiences. Thus all products within a product line are related but may vary in terms of style, colour, quality, etc.
Product-line pricing works by:
§ Capitalising on consumer interest in a number of products within a range.
§ Making the price entry point for the basic product relatively cheap.
§ Pricing other items in the range more highly – in order to ‘complete the set’ the consumer has to pay substantially more for the additional matching items.
Illustration 14 – Product-line pricing strategy
A dinner service is being promoted. The entry point (serving plates) will be relatively cheap. Other, less essential matching items in the same range (e.g. gravy boats) will have a higher price.www.examｗ.com
Test your understanding 12
Which of the following is true of product-line pricing?
1 The essential items within the range are relatively highly priced.
2 Product-line pricing relies on the wish of consumers to build up a matching set of items within a product range.
3 The less essential items with in the range are relatively cheap since demand for these items is relatively low.
4 The product range has a short shelf life. |
发表于 2012-2-23 17:09:42
