Question

A company charges $100 for a basic model and $150 for deluxe version. What is this an example of

Answer 1

This pricing strategy is an example of **product differentiation** and **price differentiation**. By offering two different models with varying price points, the company can appeal to different customer segments based on their preferences and willingness to pay. The basic model at $100 likely targets cost-conscious consumers, while the deluxe version at $150 caters to those seeking additional features or perceived value. This strategy can also be related to **market segmentation**, as it allows the company to capture a wider market by meeting diverse consumer needs.