Here the firm makes a line of products that are all aimed at the same general target market. The differences in price should reasonably reflect the differences in the features for each version of the product. Here the firm makes a line of products where each product serves an entirely different target market. So there doesn t have to be any relation between the various prices. Complementary Product Pricing.
Complementary pricing means setting prices on several products as a group.
The overall objective is to increase sales for the group as a whole. One product may be priced very low so that profits from another product will increase. This involves setting one price for a set of products. It s cheaper for the customer to buy the products at the same time than separately. This strategy may help stimulate demand for some products that are not as attractive to the consumer in isolation but offer a reasonable increase in benefits when bundled with the other items.