Question

Go Zone plans to introduce four tablet models over the next year. These models range from basic readers at $99 per unit, to more sophisticated tablets at $399 per unit. The more features a model has, the more expensive it is. What pricing strategy is Tone Zone using for its range of tablets?

Answer 1

Answer:

Product line Pricing  

Explanation:

The reason is that when the manufacturer produces a number of quality range products and price them accordingly. This means that the customer who has different level of purchasing power can fulfill his needs and wants accordingly. So producing a single product limits the satisfying of needs and wants of small customer segment whereas producing multiple product range helps in targeting a range of customer segments. The different prices of tablets charged here for different products actually reflects the prices of the products.