ENTREPRENEURIAL MARKETING
PRICING STRATEGIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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product line pricing
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captive product pricing
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optional product pricing
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by-product pricing
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Detailed explanation-1: -Market skimming makes sense only under certain conditions. First, the product’s quality and image must support its higher price, and enough buyers must want the product at that price. Second, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.
Detailed explanation-2: -Price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay and then lowers it over time.
Detailed explanation-3: -Psychological pricing, as a phrase on its own, describes the business practice of setting prices lower than a whole number. The idea behind reducing the left most digit is that customers will read the slightly lowered price and treat it as much lower.