GENERAL KNOWLEDGE

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GK

MARKETING MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Select the technique and example used in pricing products.Technique:Pricing products lower than average in order to stimulate sales or just to get customers to come in and purchase not just the lower priced items, but other items as well. Example:Pricing a gallon of milk for $1 when normally it sells for $2.50
A
Promotional Pricing
B
Everyday Low Price (EDLP)
C
Pricing Lining
D
Bundle Pricing
Explanation: 

Detailed explanation-1: -Penetration pricing is a strategy used by businesses to attract customers to a new product or service by offering a lower price initially. The lower price helps a new product or service penetrate the market and attract customers away from competitors.

Detailed explanation-2: -Penetration Pricing Strategy Contrasted with skimming pricing, a penetration pricing strategy is when companies enter the market with an extremely low price, effectively drawing attention (and revenue) away from higher-priced competitors.

Detailed explanation-3: -Everyday low pricing strategy is a price management method or tactic that enables companies, brands, and retailers to offer their customers consistently low-priced products. Instead of offering discounts, coupons, and promotions, companies focus on providing consumers with low-price products.

Detailed explanation-4: -Loss Leader and Market Penetration Pricing Strategies Market Penetration is when retailers intentionally lower the price of a product in order to gain market share over competitors.

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