MANAGEMENT

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: -Price skimming Companies use price skimming when they are introducing innovative new products that have no competition. They charge a high price at first, then lower it over time. Think of televisions.

Detailed explanation-3: -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. Prestige pricing focuses on the perceived value of a product rather than the actual value or production cost.

Detailed explanation-4: -For example, positive brand equity enables brands to charge premium prices. When consumers believe in the values put forth by a brand and the quality of its products, they will pay higher prices to purchase from that brand.