Why Is Price Lining Is a Valuable Tactic for Marketing

Multiple Choice

Why is price lining is a valuable tactic for marketing managers?

A) Price lining results in a greater inventory carrying charge.
B) A company that uses price lining is able to carry a smaller total inventory and reduce confusion for its customers.
C) A company that uses price lining has more price markdowns and greater markup.
D) The price lining strategy allows the company to gain brand loyalty from its targeted segments.
E) Price lining tends to confuse customers and requires them to listen closely to the salesperson pitch.