Question

When Toyota introduced its Scion line of cars, the lowest-price model was listed for $15,000 while the highest-priced model was listed for $21,000, with two other list prices in between. Each price point represented distinct differences in the features and quality of the cars. Toyota used a ________ pricing approach.
A. market penetration
B. zoneC.price lining
D. loss leader
E. noncumulative quantity discount

Answer 1

Answer: C- Price Lining

Explanation: Price Lining is a strategy by sellers of a particular product by classifying their products into different classes, qualities and prices.

Price lining helps consumers of these product to choose the product that is close to their taste and price power.

It gives sellers a good market share as different categories of consumers will be taken care of with this strategy and thereby increasing their sales and market acceptability.