Question

A computer manufacturer has a basic model, a business model and a premium model, each with a variety of options. They each have a different base price. This is an example of:

Answer 1

Answer: Price lining

Explanation: Price lining can be defined as a situation in which the goods are categorized as per the basis of their quality. Price lining is done by business entities with the goal of achieving larger customer base which will further result in higher profits.

In the given case, the manufacturer is offering three types of models in market each having different price as per its quality. Thus, we can conclude that the given example is a case of price lining.