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Canon introduces a new model of camera. The basic version sells for $500. However, the same model, with a telephoto lens, sells for $900. What type of product line pricing is Canon using?

A. Captive
B. Bundling
C. Image
D. Complementary
E. Premium

User Mithgroth
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1 Answer

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Final answer:

Canon uses a Premium pricing strategy for its new camera model, charging more for the version with a telephoto lens to reflect its additional luxury feature.

Step-by-step explanation:

Canon is employing Premium pricing strategy when introducing their new camera model with a basic version at $500 and the same model with a telephoto lens at $900. Unlike Captive pricing, which would require customers to make subsequent purchases for functionality, or Bundling, which would combine multiple goods at a single price, Premium pricing refers to charging a higher price for a product that is considered to have unique advantages or luxury features, in this case, the added telephoto lens. This pricing strategy is reflective of sophisticated camera optics, which are designed for a clear image with minimal aberration and color imaging, paralleling the complexity of digital camera electronics and the basic optical physics that facilitate sharp photographic captures.

User Mzereba
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