BACHELOR OF BUSINESS ADMINISTRATION

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BUSINESS ADMINISTRATION

MARKETING MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Select the technique and example used in pricing products.Technique:Charging a low price everyday without ever planning on discounting it in the future to provide consistent sales of that item over a period of time.Example:Charging the same price for eggs on a consistent basis. The eggs never go on sale nor are they ever discounted.
A
Promotional Pricing
B
Everyday Low Price (EDLP)
C
Pricing Lining
D
Bundle Pricing
Explanation: 

Detailed explanation-1: -Everyday low pricing strategy is a price management method or tactic that enables companies, brands, and retailers to offer their customers consistently low-priced products. Instead of offering discounts, coupons, and promotions, companies focus on providing consumers with low-price products.

Detailed explanation-2: -Penetration pricing is a strategy used by businesses to attract customers to a new product or service by offering a lower price initially. The lower price helps a new product or service penetrate the market and attract customers away from competitors.

Detailed explanation-3: -Penetration pricing: price is set artificially low to gain market share quickly. This is done when a new product is being launched. It is understood that prices will be raised once the promotion period is over and market share objectives are achieved.

Detailed explanation-4: -There are many different pricing strategies, but Competitive Pricing, Cost-plus Pricing, Markup Pricing and Demand Pricing are four common methods for small business owners to use.

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