BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A company charging fairly low prices for high-quality goods is practising ____ pricing.
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competitive
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value
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perceived-value
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quality
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Explanation:
Detailed explanation-1: -Penetration pricing is a marketing strategy used by businesses to attract customers to a new product or service by offering a lower price during its initial offering.
Detailed explanation-2: -Skimming strategy: high price is charged for a product till such time as competitors allow after which prices can be dropped. The idea is to recover maximum money before the product or segment attracts more competitors who will lower profits for all concerned.
Detailed explanation-3: -Cost Plus Pricing (also called Full cost pricing, or Markup Pricing) is a pricing strategy that aims to cover all costs while still allowing the entrepreneur to make a reasonable profit.
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