Chapter 11: Pricing Strategies Questions Answers High Level 2023

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Pricing Strategies - -1) Market-skimming pricing 2) Market- penetration pricing -Market-Skimming Pricing - -a strategy with high initial prices to "skim" revenue layers from the market -Product... quality and image must support the price -Buyers must want the product at the price -Costs of producing the product in small volume should not cancel the advantage of higher prices -Competitors should not be able to enter the market easily -Market-Penetration Pricing - -Sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share -Price sensitive market -Inverse relationship of production and distribution cost to sales growth -Low prices must keep competition out of the market -Product Mix Pricing Strategies - --Product line pricing -Optional- product pricing -Captive- product pricing -By-product pricing -Product bundle pricing [Show More]

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