Product line,Product MIX,Product line pricing,
Product line pricing refers to the practice of reviewing and setting prices for multiple products in coordination with one another.)
It is the process that retailers use to separate goods into various cost categories creating different quality levels in the minds of their customers.
Product line pricing is more effective when there are ample price gaps between each category so that the consumer is well informed of the quality differentials.
Pricing different products within the same product range at different price points.
The greater the features and the benefit obtained the greater the consumer will pay. This form of price discrimination assists the company in maximizing turnover and profits.
Ex: Samsung offering different smart phones with different features at different prices.
This strategy is used for setting the price for entire product line.
In many companies now days develop product line instead of a single product so product line pricing is setting the price on the basis of cost difference between different products in a product line.
Marketer also keeps in mind the customer evolution of different features and also competitive prices.