Tiffany Would Like to Start a Small, In-Home Baking Business

Multiple Choice

Tiffany would like to start a small, in-home baking business. She often makes baked goods for friends and family, but usually mixes the ingredients by hand. Tiffany is expecting to be baking larger batches than she normally does and thinks a stand mixer would be a good investment. She looks online at KitchenAid stand mixers and sees that the Pro 600 Stand Mixer features a six quart stainless steel bowl, several stainless steel attachments, and a 575-watt motor. The Pro 600 mixer is priced at $449. KitchenAid sells a variety of other stand mixers, but most have nylon coated attachments and lower-wattage motors. Those are priced between $259 and $329. Tiffany really wants the Pro stand mixer given that it has the most desirable and versatile features. KitchenAid is utilizing which type of pricing strategy?

A) Premium pricing
B) Customary pricing
C) Reference pricing
D) Price lining