Question

Dream Homes is an appliance store. It recently launched its own brand of freezers in order to build customer loyalty. The store launched three different models to cater to low, middle, and high income groups. The freezers are also priced accordingly. These freezers are exclusive to Dream Homes and cater to all customer segments. This pricing strategy involving price points within a merchandise category is known as ___________.

Answer 1

Answer:

Price lining

Explanation:

Pricing strategy can be defined as an approach used by various organizations to determine the amount in which their goods and services will be sold. The different prices of products will go a long way in determining the amount of profit that will be made by the company.

Price lining is a pricing strategy in which the price of products depends on the category which they fall under such as the quality. Price lining helps an organization to maximise a high amount of profit.

Answer 2

Answer:

Price lining

Explanation:

Price lining in marketing, describes a process in which goods and services are set at different price levels according to quality, degree, attributes or features.

The higher the price, the better the quality to the consumers.

In this case, Dream Homes launched three different freezer models to cater to low, middle, and high income groups according to a price.