What distinguishes portfolio pricing from other pricing strategies?

Portfolio pricing is characterized by its approach to establishing varying price points across different products within the same category, based on features, benefits, or quality distinctions. This strategy enables businesses to cater to a diverse range of consumer preferences and budget levels by offering multiple options at different price points.

By varying prices according to the attributes of the products, companies can better meet the needs of different segments of their target market. For instance, higher-priced offerings may feature enhanced features or exclusivity that appeal to consumers seeking premium products, while lower-priced items can attract cost-conscious customers. This strategy not only increases the chance of capturing more sales across a broader audience but also helps in positioning products effectively in the competitive landscape.

In contrast, the other options describe approaches or restrictions that do not align with the essence of portfolio pricing. For instance, focusing on a single price for all products would stifle the differentiation that portfolio pricing aims to exploit. Similarly, prohibiting odd-even pricing or bundling of products suggests a rigidity that is contrary to the flexibility inherent in portfolio pricing strategies.