Why Is Price Lining Is a Valuable Tactic for Marketing

question 103

Multiple Choice

Why is price lining is a valuable tactic for marketing managers?

• A) Price lining results in a greater inventory carrying charge.
• B) A company that uses price lining is able to carry a smaller total inventory and reduce 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 pitch.

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Definitions:

Standardization

The process of implementing and developing technical standards to ensure products and services meet certain quality and safety criteria consistently.

Customer Complaints

Feedback from customers expressing dissatisfaction with a product or service, often seen as an opportunity for improvement by businesses.

Syndicated Data Services

Companies that collect and sell data, often gathered from multiple sources, to clients for market research and analysis.

Quality-oriented Process

An approach focusing on maintaining high standards in production or service delivery to satisfy customer needs.