By limiting consumer access to one of the camera models, the company will create a price fence that prevents consumers who are willing to pay more for certain features from purchasing lower-priced models. The company can also think about how to further differentiate its product line in order to maximize value by customer segment.
A company is reviewing its marketing and pricing strategies to see if it is doing enough to differentiate customer value segments. They offer five types of digital cameras and research shows that most consumers are purchasing the two lowest priced cameras in the product line. These camera models include the most coveted features and are popular with a wide range of consumers. Which of the following strategies might best help the company manage what customers pay by segment?
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