Quoted from DCFAN:
It just seems like just about every successful item that sells has different options at different price points. From paper products to cell phones to cars, they all have competing of different priced products from the same manufacturers.
I think if you actually looked at it.. you'd find the complete opposite. Established price points for a market segment are common.. and customers as a whole determine 'better' based on the selling cost. Same company makes the same widget, in 3 flavors.. priced different.. and calls the top priced one premium for almost no real value difference. Vendor A establishes itself as a premium product over vendor B by simply saying they are and charging more than vendor A.
While you will see multiple price points for toilet paper.. you'll find they all usually end up in similar tiers across different manufacturers.
Look at products that replace prior models... miraculously they seem to end up similarly priced vs the outgoing model... unless they are raising ASPs. The new model will always be compared to the old... so there is heavy pressure to justify any comparisons.
Consumers expect pricing stability... not volatility.