In these ads, the higher price shown is known as an ..... Its purpose is to suggest to the consumer the appropriate IRP. To the extent that the suggestion succeeds, consumer IRPs will be higher than the products selling price, and the likelihood of a loss-and-gain perception of the price will be maximized.

PRICING STRATEGIES

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

In these ads, the higher price shown is known as an ____ Its purpose is to suggest to the consumer the appropriate IRP. To the extent that the suggestion succeeds, consumer IRPs will be higher than the product’s selling price, and the likelihood of a loss-and-gain perception of the price will be maximized.

A	external reference price
B	Dangling
C	Regression approach
D	Experimental approach

Explanation:

Detailed explanation-1: -e) High Price Maintenance Pricing strategy is used when the high price is associated with the quality of the service. Many doctors, lawyers and other professionals follow this pricing strategy.

Detailed explanation-2: -Premium Pricing Strategy Also known as prestige pricing and luxury pricing, a premium pricing strategy is when companies price their products high to present the image that their products are high-value, luxury, or premium.

Detailed explanation-3: -Skimming involves setting high prices when a product is introduced and then gradually lowering the price as more competitors enter the market. This type of pricing is ideal for businesses that are entering emerging markets.

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ENTREPRENEURSHIP

ENTREPRENEURIAL MARKETING

PRICING STRATEGIES