What business practice involves producing several models of the same product and charging different prices for each model?

• A. Version control
• B. Product diversification
• C. Product versioning
• D. Customization

Answer: (C)

Versioning is about offering several pre-defined variants of the same product, each with its own features and price. This approach targets different customer needs and willingness to pay by presenting tiers or editions that vary in value. For example, software often comes in free, standard, and pro editions; cars have trim levels; electronics might offer different storage or capabilities. By producing multiple models of the same product and charging different prices for each, a business can capture more total value from a broader range of customers.

Other terms don’t fit this pattern. Version control is about tracking changes to code or documents, not pricing or product variants. Product diversification means adding new, different product lines, rather than variants of the same product. Customization focuses on tailoring a product to a specific customer, which can involve bespoke features and pricing, not a set of predefined models with fixed prices.