Platinum Vitamins has earned a solid reputation in the health and nutrition market for its fish-based supplements, such as Omega-3 pills. The company determines that it will expand its offerings to non-fish-based products, given new public health trends emerging, and must determine their prices through
Explanation
Answer: D - Platinum Vitamins has earned a solid reputation in the health and nutrition market for its fish-based supplements, such as Omega-3 pills. The company determines that it will expand its offerings to non-fish-based products, given new public health trends emerging, and must determine their prices through product line pricing. When a company concentrates its offerings on a single product or line, it begins to gain a reputation based on the quality and popularity of that product. However, when the company begins to offer new lines of products, it faces difficult decisions on how to price them. This is because not only does the company need to pay attention to competitors’ prices, but also to what their current customers have grown accustomed to with present lines.
