Moving on from Product to Price, review the following pricing strategies. A skimming strategy prices the product high to make big profits while there’s little competition. A penetration strategy uses low price to attract more customers and discourage competitors. Demand-oriented strategy starts with consumer demand rather than cost. Competition-oriented strategy is based on all competitors’ prices. Price leadership strategy attempts to force all competitors to follow the pricing strategy of one or more dominant companies within an industry. What pricing strategies do you see being emphasized in marketing activities today? Give a specific example of a product that is obviously priced according to one of the pricing strategies listed above.
Moving on from Product to Price, review the following pricing strategies. A skimming strategy prices the product high to make big profits while there’s little competition. A penetration strategy uses low price to attract more customers and discourage competitors. Demand-oriented strategy starts with consumer demand rather than cost. Competition-oriented strategy is based on all competitors’ prices. Price leadership strategy attempts to force all competitors to follow the pricing strategy of one or more dominant companies within an industry. What pricing strategies do you see being emphasized in marketing activities today? Give a specific example of a product that is obviously priced according to one of the pricing strategies listed above.
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 1DYMP
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Moving on from Product to Price, review the following pricing strategies.
- A skimming strategy prices the product high to make big profits while there’s little competition.
- A penetration strategy uses low price to attract more customers and discourage competitors.
- Demand-oriented strategy starts with consumer demand rather than cost.
- Competition-oriented strategy is based on all competitors’ prices.
- Price leadership strategy attempts to force all competitors to follow the pricing strategy of one or more dominant companies within an industry.
What pricing strategies do you see being emphasized in marketing activities today? Give a specific example of a product that is obviously priced according to one of the pricing strategies listed above.
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