When Establishing Product-Line Pricing, the Highest-Priced Item Is Typically Positioned

question 255

Multiple Choice

When establishing product-line pricing, the highest-priced item is typically positioned as

• A) the oldest product item in the line.
• B) the premium item in the line in terms of quality and features.
• C) the largest selling product item in the line.
• D) the loss-leader item for the rest of the product line.
• E) the most price-insensitive product item in the line.

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Definitions:

Vertically Applied Forces

Forces that act perpendicular to the horizontal surface, such as gravitational forces acting on a structure or component.

Compressed Condition

The state of a material or object that has been compacted or squeezed, reducing its volume and changing its density.

Jounce

The most compressed condition of a spring. Literally bounce.

Spring

An elastic device used to store or suppress mechanical force. Springs are used in vehicle suspensions where they act to support the chassis and buffer it from road forces. Some examples of springs are single leaf, multiple leaf, torsion bar, rubber block, and air-filled.