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Product line pricing – Pricing Strategies
Pricing Strategies. Product line pricing is a pricing strategy used to sell different products in the same product range at different price points defined by features or benefits. An example of product line pricing can be found at apple inc. Apple produced 6 different version of the ipad and all have different prices. One of the ipad goes for as low as $499 while another goes as high as $829 (Hesseldahl, 2010). The differential features are that, the three of the 6 versions will have 3G, and the other three without. The components for the $499 ipad are estimated to cost $219.35 while those of the $829 are estimated to cost $335 to build. Pricing Strategies.
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Hesseldahl, A. (2010). What your gadget really costs: Consumer electronics teardown. Business Week. Retrieved on Nov. 16, 2011 from http://images.businessweek.com/ss/07/01/0118_teardown/index_01.htm
Reid, R. & Bojanic, D. (2009). Hospitality marketing management. Washington D.C: John Wiley and Sons.
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