When Using a Price Lining Strategy, a Marketer Will

question 125

Multiple Choice

When using a price lining strategy, a marketer will

• A) set the price of a line of products at a number of different specific pricing points.
• B) set the price slightly higher than necessary to protect against losses resulting from adverse environmental forces.
• C) adjust the price of a product so it is "in line" with the price of its largest competitor.
• D) set a low initial price on a new product to appeal immediately to the mass market.
• E) set a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark.

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Definitions:

Bus Maintenance

The process of keeping buses in optimal working condition through regular inspections, repairs, and necessary replacements.

Liability Insurance

Insurance coverage that protects against claims arising from injuries or damage to other people or property.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a particular segment, product, or department within a business.

Common Fixed Expenses

These are expenses that do not vary with production volume or sales volume, shared across different segments of a business.