What describes multiple product pricing?

• A. Pricing the entire product range to generate profit, not just a single item.
• B. Pricing each product independently without regard to range.
• C. Pricing based on the cost of the most expensive item.
• D. Pricing that ignores the relationship between products in a portfolio.

Answer: (C)

When pricing a portfolio of products, you want a coherent structure that preserves value across the whole range and ensures the range as a whole remains profitable. Anchoring pricing to the cost of the most expensive item provides a clear reference point: that premium item typically has the highest cost and often the highest perceived value, so using its cost as the base helps ensure all other items in the range deliver sufficient margin.

From that anchor, the prices of other products can be set with consistent relationships—discounts or markup relative to their own costs—so the price architecture stays logical and easy to manage. This approach helps maintain a clear value ladder for customers and prevents situations where cheaper items are priced too high (undermining demand) or too low (undermining margins on the premium item). It also reduces the risk of mispricing across the portfolio that can happen when each product is priced in isolation.

In contrast, pricing each item independently, pricing the range without regard to its internal relationships, or ignoring the connections within the portfolio can distort margins and confuse customers.