A company plans to maximize profitability by charging more for its products at retail locations...

Context: The company intends to charge different prices for products sold through retail locations versus online.

Options Breakdown:

A. Group: Refers to segmenting customers based on demographic or psychographic groups, which is not directly related to sales channels.

B. Channel: Involves segmenting the market based on the distribution channels used, such as online vs. retail.

C. Regional: Pertains to geographic segmentation, which is not directly relevant to the pricing strategy across different sales channels.

D. Location: While somewhat related to geographic segmentation, it does not specifically address the different pricing strategies for online vs. retail channels.

Correct Answer Justification: By segmenting based on channels, the company can implement different pricing strategies for products sold online versus in retail stores, aligning with the goal of maximizing profitability through differentiated pricing.

References:

Marketing and distribution strategy literature

Case studies on multi-channel retail pricing strategies