Which pricing strategy describes pricing the range of products to achieve overall profitability?

• A. Multiple product pricing.
• B. Market penetration pricing.
• C. Dynamic pricing.
• D. Captive product pricing.

Answer: (A)

Pricing across a range of products to achieve overall profitability is about product-line pricing: setting prices for different items within a single family so the whole assortment earns the target return. This approach looks at how each product contributes to the total margin, not just maximizing the price of one item. By arranging price points along the line, you can push volume on lower-priced items while protecting or enhancing margins on higher-priced or complementary products, and even create bundles that boost the combined profitability of the range. For example, a company might price printers competitively to attract buyers but set ink cartridges at a higher margin, or offer bundles that make the full range more attractive and profitable as a whole. The other strategies focus on different aims—market penetration targets market share with low entry prices, dynamic pricing changes prices in real time with demand, and captive product pricing concentrates on the relationship between a main product and its compulsory accessories, rather than optimizing profitability across the entire product range.