GK
MARKETING MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Promotional Pricing
|
|
|
Everyday Low Price (EDLP)
|
|
|
Pricing Lining
|
|
|
Bundle Pricing
|
Detailed explanation-1: -Everyday Low Pricing Example: Walmart The major retailer offers low prices to consumers throughout the year, instead of offering low prices during sale events. The company adopted the strategy following its founding, building its reputation on being the store that offers consumers the lowest prices every day.
Detailed explanation-2: -Penetration pricing: price is set artificially low to gain market share quickly. This is done when a new product is being launched. It is understood that prices will be raised once the promotion period is over and market share objectives are achieved.
Detailed explanation-3: -Penetration pricing “Penetration pricing makes sense when you’re setting a low price early on to quickly build a large customer base, ‘’ says Dolansky. For example, in a market with numerous similar products and customers sensitive to price, a significantly lower price can make your product stand out.
Detailed explanation-4: -There are many different pricing strategies, but Competitive Pricing, Cost-plus Pricing, Markup Pricing and Demand Pricing are four common methods for small business owners to use.