Question

Marketers often apply their understanding of the psychological aspects of pricing in a practice they call_____, whereby items in a product line sell at different prices, or price points.

A) Price discrimination.
B) Price lining.
C) Price bundling.
D) Price skimming.

Answer 1

Marketers often apply their understanding of the psychological aspects of pricing in a practice they call price lining, whereby items in a product line sell at different prices, or price points.

Step-by-step explanation:

Marketers often apply their understanding of the psychological aspects of pricing in a practice they call price lining, whereby items in a product line sell at different prices, or price points. Price lining involves setting distinct price points for different versions of a product to meet the needs of different consumer segments. This strategy allows the marketer to capture additional revenue by offering higher-priced options for those willing to pay more, as well as lower-priced options for budget-conscious consumers.