Why Is Price Lining a Valuable Tactic for Marketing Managers

question 12

Multiple Choice

Why is price lining a valuable tactic for marketing managers?

• A) Price lining results in a greater inventory carrying charge.
• B) It reduces confusion for its customers.
• C) A company that uses price lining has more price markdowns and greater markup.
• D) The price lining strategy allows the company to gain brand loyalty from its targeted segments.
• E) Price lining tends to confuse customers and requires them to listen closely to the salesperson's pitch.

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Definitions:

Transaction Cost

The expenses incurred when buying or selling goods or services, which may include fees, taxes, and other charges.

Contracts

Legally binding agreements between two or more parties.

Judicial System

The network of courts and tribunals responsible for interpreting and applying the law in legal cases.

Customer Relations

Customer Relations involve the strategies and techniques that businesses use to maintain and enhance interactions and relationships with their customers.