A company prices one litre bottle of its mineral water at 20 - but 100 ml ofthe same water in a…
Under product-form pricing, different versions or physical configurations of the same core product are priced differently, but not in proportion to their respective…
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A company prices one litre bottle of its mineral water at 20 - but 100 ml ofthe same water in a moisturizer spray for 50/-. This is an example of which one of the following pricing practices?
Answer and explanation
Correct answer C
Under product-form pricing, different versions or physical configurations of the same core product are priced differently, but not in proportion to their respective production costs. Pricing a 1-litre bottle of mineral water at Rs. 20 while charging Rs. 50 for just 100 ml of the same water packaged in a facial moisturizer spray is a classic textbook example of product-form pricing.
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UGC NET Commerce