ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -What Are The ‘4 Pricing Methods’? There are 4 Pricing Methods that can help you put a price on what you sell: replacement cost, market comparison, discounted cash flow/net present value, and value comparison.

Detailed explanation-3: -Low-cost strategy(also Low-cost price) is a pricing strategy characterized by low prices of goods and services using various saving methods. The company skillfully reduces real costs, which contributes to more customers and thus increases its sales.

Detailed explanation-4: -Cost-plus pricing. Calculate your costs and add a mark-up. Competitive pricing. Set a price based on what the competition charges. Price skimming. Set a high price and lower it as the market evolves. Penetration pricing. Value-based pricing.