Selling a product at or below cost to lure customers in and drive other sales is an example of product-line pricing.
A restaurant, for example, might offer a low-priced entrée with the purchase of a drink and dessert that have higher profit margins.
What is line pricing or a line item
Product line pricing refers to setting of prices for all items in a product line involving the lowest-priced product price, the highest price product, and price differentials for all other products in the line.
What are the factors which determine product line pricing?
- Organisational factors: ADVERTISEMENTS:
- Marketing mix: Though price is an important component of marketing mix, other components cannot be niggard
- Product differentiation:
- Product Costs:
- Product life-cycle:
- Pricing objectives:
- Functional position:
What are the problems associated with product line pricing
The problems are: 1. Pricing Over the Life Cycle of the Product 2. The rate of Market Growth 3.
The Erosion of Distinctiveness 4.
Why is product line pricing important
Using product line pricing allows companies to target customers with low-end, mid-range and high-end budgets.
By offering two, three or more product tiers, a company can reach a much larger range of customers which opens them up to the potential for more sales and greater brand recognition.
Why is product line pricing good
Product line pricing strategies are some of the most popular, particularly with companies looking to cultivate a broad appeal with their product.
A good product line pricing strategy will allow you to market to different customer types, as well as anchor your products.
What is product line example
A product line refers to a particular good or service that a company makes and markets to customers.
A food company may extend a product line by adding various similar or related products (e.g., adding mesquite BBQ flavor to its existing potato chips line), and create a more diversified product family.
What is meant by product pricing
Meaning of Pricing: Pricing method is exercised to adjust the cost of the producer’s offerings suitable to both the manufacturer and the customer.
The pricing depends on the company’s average prices, and the buyer’s perceived value of an item, as compared to the perceived value of competitors product.
What’s another word for product line
Alternate Synonyms for “product line”: line; line of products; line of merchandise; business line; line of business; merchandise; ware; product.
What is a product line quizlet
Product Line. A group of closely-related product items. Product Mix. All products that an organization sells.
What do you mean by product pricing
What is product pricing? Product pricing is a process that entails the translation of product value into quantitative terms.
Pricing decision is usually made before its initial release to the market, however, businesses can change the selling price at any point for a variety of reasons.
What are the types of product line
Companies sell many product lines under various brand names, and the products are mainly differentiated by quality, price, and targeted demographic.
There are different brand types: corporate brands, product brands, personal brands, service brands.
Why do companies use pricing lining strategies
Price lining offers consumers the flexibility of choice. Those seeking additional features or higher quality are willing to purchase the product at a higher price point, while budget conscious shoppers or those that just want the basics may go for the lower-priced option.
What is product price lining
Price lining is the practice of releasing multiple versions of the same product or service at different price points simultaneously.
It gives the impression that a product has both budget-friendly, standard options and premium options with extra features and benefits.
What is full line pricing
FULL LINE PRICING Definition & Legal Meaning Retailing a product family with relative prices and package discounting the line.
Also refer to product family.
What is a segmented pricing example
Price segmentation is the process of charging different prices for the same or similar product or service.
You can see examples everywhere: student prices at movie theaters, senior prices for coffee at McDonald’s, people who use coupons, and so on.
What are some other examples of promotional pricing
The most common promotional pricing types include BOGOF (buy one get one free), seasonal sales promotions, discounts, and flash sales.
Based on specific pricing objectives and business strategy, you can also consider multi-buys, loyalty programs, conditional sales, free shipping, or gifts.
What are different types of segmented pricing?
- Customer-segment pricing
- Product-form pricing
- Location pricing
- Time pricing
What is premium pricing example
Premium pricing (also called image pricing or prestige pricing) is the practice of keeping the price of one of the products or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price.
How do companies classify product lines
Product lines may be classified according to product class, customer group, price and/or quality, and distribution method.
What is the key factor in deciding price lines
The key factor in deciding price lines is the differential between the levels of pricing.
The prices within the line must be far enough apart so that the customer can perceive that there are significant differences between the groups.
How do you create a product line?
- Define Your Target User
- Product Validation
- Develop a Go-To-Market Strategy
- Set The Pre-Launch Stage
- Develop the Next Product
- The Bottom Line on Launching a Product
What is product line strategies
A good product line strategy guides managers to improve their product line’s total performance.
It creates a focus on the whole line, not just products independent of one another.
And the focus also sets a course to avoid disjointed decisions, actions, and investments that may impact the line’s performance negatively.
What are the 4 types of pricing methods
There are 4 Pricing Methods that can help you put a price on what you sell: replacement cost, market comparison, discounted cash flow/net present value, and value comparison.
What is an example of dynamic pricing
Dynamic pricing is widespread with ride-sharing services such as Uber and Lyft. In this industry, snowy, rainy, or stormy days and the rush hour dictate the prices (surge pricing) to get extra benefits from these environmental or time-based conditions.
The food delivery industry uses follows similar practices.
What are the different approaches in pricing
What are the 4 major pricing strategies? Value-based, competition-based, cost-plus, and dynamic pricing are all models that are used frequently, depending on the industry and business model in question.
What are the features of product line?
- Product line consists of closely related product items
- It is a compose of various similar items
- Product items are complementary to one another
- There is difference in price
What businesses use competitive pricing
Competitive pricing is typically used by businesses that sell the same or highly similar products in the same market for an extended period, as prices of these products often reach a level of equilibrium.
What are the product line decisions
The product line decisions are (1) product line expansion, (2) product line reposition and (3) product line contraction.
The marketing executive will make a variety of product line decisions over the life of a product.
What is product line decision
Product line refers to a group of same products. Product line decisions refer to decisions relating to addition or deletion of product from the existing product line.
Why must a product’s price be set in line with the marketing strategy
The goal of product line pricing is to maximize profits. The more features offered, the more consumers will pay.
The goal is to draw enough interest in the primary product, to sell the upgraded product at a greater price based on the interest in the basic primary product.
Sources
https://smallbusiness.chron.com/new-product-pricing-strategy-2782.html
https://www.indeed.com/career-advice/career-development/product-line-vs-product-mix
https://courses.lumenlearning.com/wm-retailmanagement/chapter/technique-price-lining/
https://www.123helpme.com/essay/What-Is-The-Difference-Between-Kohls-Pricing-FCJJU8QDNVV
