Product Line Pricing

Concept summarized by Sam Mishra, MBA (MIT Sloan)

Pricing of a product offering as a function of  pricing of other product offerings in a vertically extended product line. For example, before introducing the bigger Toyota Avalon family sedan, Toyota had two established products in the family sedan product line: Toyota Corolla and Toyota Camry. The Camry, being a bigger car than the Corolla, is priced higher than the Corolla.  Similarly, the Avalan is priced higher than the Camry, since the Avalon is a bigger car than the Camry. This is an example of product line pricing.

Also see vertical extension of a product line.