ENTREPRENEURIAL MARKETING
MARKETING MIX
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The product’s quality and image must support its higher price.
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Enough buyers must want the products at that price.
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Competitors are not able to undercut the high price.
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Competitors can enter the market easily.
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The cost of producing a smaller volume is not so high that it negates the advantage of charging more per unit.
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Detailed explanation-1: -a pricing approach in which the producer sets a high introductory price to attract buyers with a strong desire for the product and the resources to buy it, and then gradually reduces the price to attract the next and subsequent layers of the market.
Detailed explanation-2: -Disadvantages of price skimming Early adopters might become turned off by price decreases after their initial purchase. A skimming pricing strategy doesn’t work if you have competitors creating similar technologies. The quality of your new product or service must justify the higher price to be effective.
Detailed explanation-3: -Perceived quality: Price skimming helps build a high-quality image and perception of the product. Cost recuperation: It helps a firm quickly recover its costs of development. High profitability: It generates a high profit margin for the company. More items •11-Dec-2022