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:Pricing products lower than average in order to stimulate sales or just to get customers to come in and purchase not just the lower priced items, but other items as well. Example:Pricing a gallon of milk for $1 when normally it sells for $2.50
A
Promotional Pricing
B
Everyday Low Price (EDLP)
C
Pricing Lining
D
Bundle Pricing
Explanation: 

Detailed explanation-1: -Price skimming Companies use price skimming when they are introducing innovative new products that have no competition. They charge a high price at first, then lower it over time. Think of televisions.

Detailed explanation-2: -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.

Detailed explanation-3: -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. The lower price helps a new product or service penetrate the market and attract customers away from competitors.

Detailed explanation-4: -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.

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