Q7 (i) Consider the technique of indirect segmentation via which a suppliers offer a product line of different qualities or different package sizes. Explain: (a) how the quality or package-size dimension needs to relate to buyers' willingnesses to pay; (b) how prices and outputs should be set; and (c) how a supplier might create a product line beginning from a single basic product design. (ii) Describe a real-world example of this market segmentation strategy, and relate it to your three explanations (a), (b), and (c) in part (i).

This is on market segmentation, this topic is talking about product line and how sometimes layers of products adds into it.

for this question i will need references of the information,