What do price points refer to?

Price points refer to the range of prices that are charged for a specific category of merchandise. This concept is crucial for businesses as it helps them understand consumer behavior and market positioning. By establishing varied price points within a category, businesses can appeal to different segments of the market, allowing customers to choose based on their budget or preferences. This strategy not only aids in capturing a broader audience but also enables effective pricing strategies in response to market demands and competition.

The other answers do not encapsulate the complete concept of price points. For example, preferred selling prices apply to specific items rather than a range for an entire category, while the lowest acceptable price focuses on minimal thresholds for sales rather than the broader pricing strategy. The price set for comparison with competitors pertains to competitive analysis rather than overall price ranges.