ENTREPRENEURIAL MARKETING
PRICING STRATEGIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Gains market share
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Covers costs and breaks even
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Allows an organisation to make the largest profit possible
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None of the above
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Detailed explanation-1: -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.
Detailed explanation-2: -One of the benefits of price skimming is that it allows businesses to maximize profits on early adopters before dropping prices to attract more price-sensitive consumers.
Detailed explanation-3: -Price skimming examples Electronic products – take the Apple iPhone, for example – often utilize a price skimming strategy during the initial launch period. Then, after competitors launch rival products, i.e., the Samsung Galaxy, the price of the product drops so that the product retains a competitive advantage.