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Dear Sir,
Following is Q118 from the Kaplan test kit.
A brand new game is about to be launched. The game is unique and can only be played on
the Star2000 gaming console, another one of the businesses products. Students are entitled
to a small discount.
Which THREE of the following pricing strategies could be used to price the game?
Drag the correct options into the box below:
• Penetration pricing
• Price skimming
• Complimentary product pricing
• Product line pricing
• Price discrimination
• Variable production cost + %Solution: The correct options are price skimming, complimentary product pricing, and price
discrimination. Without brand loyalty or a long shelf life then a strategy of penetration is
unlikely to work. Additionally, the uniqueness of the product prevents low prices.Now, my question to you is why product line pricing and price discrimination are not one of the correct answers.
product line pricing as it says ” game is unique and can only be played on the Star2000 gaming console, another one of the businesses products)and price discrimination (as Students are entitled to a small discount)
Thank you
I think you are confusing product line pricing with complementary products pricing.
Product line pricing would be if they had different versions of the gaming console selling at different prices (just like Apple sell an expensive iPhone with a better camera etc. but also sell a cheaper version with less features).
You have written that price discrimination is one of the answers given as a correct option and so I am not sure I understand why you ask later why it is not one of the correct answers 🙂
okay, I understand now.
also, I overlooked that price discrimination is actually one of the correct answers. Sorry about that.
Regards 🙂
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