Question

`1 Describe In American Apparel what are your thoughts on a higher priced product line?

2 How do you think they could market that since it's rather different than their current product offering?

Answer 1

Pricing various products within same range at different points of price is known as product line pricing. The higher the benefits obtained the higher will the consumer pay. Product line pricing simply means the practice of setting the prices for multiple goods in a coordination with each other. It is more effective when there are sufficient price gaps between each and every category of the goods so that the consumers are well informed of the quality which differs. American companies like, Nestle, Samsung, etc., offer different product with different characteristics at different prices. The higher priced product line phone price discrimination in the company which helps in maximization of profit and turnover of the company.
The American market can work on higher priced product line. Its different from their current product offering but more useful. As the product line pricing strategy is suitable for all types of companies, as it informs about the quality differentials which is essential to cultivate the thinking of the brand and to obtain the highest share of market. It is suitable according to the American market.