Why Is Price Lining a Valuable Tactic for Marketing Managers

question 95

Multiple Choice

Why is price lining a valuable tactic for marketing managers?

• A) A company that uses price lining is able to carry a smaller total inventory and reduce confusion for its customers.
• B) The price lining strategy allows the company to gain brand loyalty from its targeted segments.
• C) A company that uses price lining has more price markdowns and greater markup.
• D) Price lining tends to confuse customers and requires them to listen closely to the salesperson pitch.

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Definitions:

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the central bank.

Debit Card

A card that looks like a credit card but works like a check; using it results in a direct, immediate, electronic payment from the cardholder’s checking account to a merchant or third party.