while there probably won’t be a definitive sweet spot for appealing to consumers when it comes to pricing, there is a tactic that can give you the flexibility to appeal to both high- and low-end consumers simultaneously called “price lining.” price lining is the practice of releasing multiple versions of the same product or service at different price points simultaneously. price lining is intended to appeal to both higher-end and value-conscious buyers by giving them a choice between better product and a better deal. in this article, i’ll shed some light on what price lining is, offer some examples, and give you some tips on how to do it right. for instance, both the iphone 11 and iphone 11 pro were released at the same time. two versions of the same product were introduced — one with premium features and one without — for different prices. they’re happy to pay more under the assumption that they’re getting a better product.
for example, in 2018 honda offered two models of the 2019 accord — lx and ex — at different price points. it has a push-to-start ignition system, heated seats, and enhanced safety features including technology to help with lane switching. buyers interested in the premium model need to believe their money is going to a fundamentally better product or service. you want to be able to appeal to two different kinds of buyers — those who prioritize value and those who prioritize quality. you might miss out on both high-end buyers who would be willing to pay considerably more for a premium model and budget-conscious buyers who won’t see your standard model as much of a bargain. products and services are only worth what people are willing to pay for them. price lining is one way to create that perception and get buyers on board with your product.
price lining, also referred to as product line pricing, is a marketing process wherein products or services within a specific group are set at different price points. however, while price lining can be profitable, it relies on a number of factors to make it work and is not always the best pricing option for every product or service. price pointing allows marketers to sell the same product but charge for additional features and options. while each model has a different price point, the costlier model is seen as higher-end when compared to the base model, while both retain the same brand name. however, while consumers generally like to have choices, there is a danger that if the higher price point is not justified, they may disregard the product or service altogether.
apart from offering purchasing value to consumers, price lining has several other advantages. pricing products or services using this method offers companies higher profit without a high investment. one of the disadvantages of price lining is its narrow focus on cost alone. as a business model, price lining does not take inflation or consumer purchasing trends into account. also, if the differentiation of benefits between the higher and lower end price points is unclear or indistinguishable to end consumers, they may avoid the brand altogether. a wayne state university master of business administration graduate, nation began her writing career in 2001 and has extensive experience in business and research writing.
price lining is the practice of releasing multiple versions of the same product or service at different price points simultaneously. it gives price lining, also referred to as product line pricing, is a marketing process wherein products or services within a specific group are set at different price lining (product line pricing) is a marketing strategy where businesses set different prices of the same products but having different features., price lining advantages and disadvantages, price lining advantages and disadvantages, price lining strategy example, odd pricing, leader pricing.
price lining is a marketing strategy that categorizes products or services based on their features and their overall value to customers. the aim of this strategy is to produce higher sales for a company by offering multiple pricing options for similar products. price lining (also product line pricing) is a marketing strategy where a business prices its offerings according to the quality, features, or attributes to differentiate it from other similar offerings. price lining is a technique used by retailers to group common items at set price-points. rather than setting the retail price based on cost or competition, price lining is a retail marketing technique where products and services of the same category are grouped in the different price range based definition: price lining is a marketing strategy that employs prices to differentiate similar products that have distinctive features, attributes or degrees, prestige pricing, bundle pricing, is price lining illegal, customary pricing, captive pricing, product line pricing, disadvantages of price lining, optional product pricing, pricing strategy, price lining products examples. what is price line strategy? what is price lining in a business? what is the best strategy for pricing? what are the 4 steps to pricing strategy?
When you try to get related information on price lining strategy, you may look for related areas. list and explain five pricing strategies,components of pricing decisions price lining advantages and disadvantages, price lining strategy example, odd pricing, leader pricing, prestige pricing, bundle pricing, is price lining illegal, customary pricing, captive pricing, product line pricing, disadvantages of price lining, optional product pricing, pricing strategy, price lining products examples.