Product Line Pricing

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Marketing Mix | The 4Ps > Forum > Product Line Pricing

🔥NEW Product Line Pricing
Aniket Deolikar, Student (MBA), India, Premium Member

WHAT IS PRODUCT LINE PRICING? INTRODUCTION Normally companies have a range of products (rather than single products). Pricing then typically starts at the most basic, simplest product. As we go up the product line, features or other differentiators are being added to the product and the price is increased accordingly. ASPECTS OF PRODUCT LINE PRICING
  • The difference in the price from one product to the next level is called a "price step".
  • The amount (size) of the price step needs to be planned carefully as it may change consumers' perceptions.
  • If the step is too small, consumers may pick up a product higher in the product line too easily.
  • If the price is too large then consumers may prefer the product lower in the product line.
THE 3 C's of PRODUCT LINE PRICING Price steps are actually based on 3 C's:
  • Cost Difference between the 2 products;
  • Customer perception of the difference; and
  • Co (...) Read more? Sign up for free 23-3-2020
 

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