Maybe not that extreme, but similar dynamic.
1. stripper - gets people into the showroom because of the low price
2. luxury - for the people who are not price sensitive and just want the best. This generates a lot of profit with little added cost to manufacture
3. medium - people see the stripper and upgrade to the medium, but aren't interested in the luxury price. This is where the bulk of the sales and profits come from
This is called "bracketing" and you'll see it all over the place. Airline seats, for example.
Base model cars with no options are also called "stripper cars". Collector cars that are "fully loaded" with all the options fetch a much higher price.