To differentiate: Between a penetration pricing strategy and a skimming price strategy and under which condition is each most likely to be used. The amount or value of funds that are required to buy a product is termed as price.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 19, Problem 1ALR

Summary Introduction

To differentiate: Between a penetration pricing strategy and a skimming price strategy and under which condition is each most likely to be used.

The amount or value of funds that are required to buy a product is termed as price.

Expert Solution & Answer

Explanation of Solution

The difference between penetration pricing strategy and skimming pricing strategy is as follows:

Skimming pricing strategy: Is where they set a high price comparatively higher than the others. It is also known as market plus pricing.

Penetration pricing strategy: This strategy sets a lower price with respective to the competitor’s price in order to increase the demand and acceptance.

Under which condition is each most likely to be used is as follows:

Skimming pricing strategy is often used as a market entry price for distinctive product or services with low or no initial competition. When supply starts to exceed demand the beginning high price would be dropped.

Penetration pricing strategy is used when the product attains recognition in the market through customer sample purchase stimulated by its low price, marketers might raise the price to the level of competing goods.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Explain how a firm can increase its profit by price discriminating. How does it determine optimal prices? How does the existence of substitute products affect the firm’s pricing policy?

What does ͞price mean and what are the objectives of pricing? What is the pricing procedure? What does it consist? What must be considered first before setting the price? What are the various approaches to pricing? What is the purpose of ͞target rate of return pricing? What is ͞odd-numbered pricing͟? What are the reasons behind this method? What are price adaptation strategies? Why are discounts given to customers? What is the degree of control over price by the seller in a monopsony? Why is this so?

What is the main (most important) way that Cost-Based Pricing is different from Customer Value-Based Pricing? Would the cost of coffee beans purchased by McDonald’s be a Fixed Cost or a Variable Cost?

Answer 2

Question

Chapter 19, Problem 1ALR

Summary Introduction

To differentiate: Between a penetration pricing strategy and a skimming price strategy and under which condition is each most likely to be used.

The amount or value of funds that are required to buy a product is termed as price.

Expert Solution & Answer

Explanation of Solution

The difference between penetration pricing strategy and skimming pricing strategy is as follows:

Skimming pricing strategy: Is where they set a high price comparatively higher than the others. It is also known as market plus pricing.

Penetration pricing strategy: This strategy sets a lower price with respective to the competitor’s price in order to increase the demand and acceptance.

Under which condition is each most likely to be used is as follows:

Skimming pricing strategy is often used as a market entry price for distinctive product or services with low or no initial competition. When supply starts to exceed demand the beginning high price would be dropped.

Penetration pricing strategy is used when the product attains recognition in the market through customer sample purchase stimulated by its low price, marketers might raise the price to the level of competing goods.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 19, Problem 1ALR

Summary Introduction

To differentiate: Between a penetration pricing strategy and a skimming price strategy and under which condition is each most likely to be used.

The amount or value of funds that are required to buy a product is termed as price.

Expert Solution & Answer

Explanation of Solution

The difference between penetration pricing strategy and skimming pricing strategy is as follows:

Skimming pricing strategy: Is where they set a high price comparatively higher than the others. It is also known as market plus pricing.

Penetration pricing strategy: This strategy sets a lower price with respective to the competitor’s price in order to increase the demand and acceptance.

Under which condition is each most likely to be used is as follows:

Skimming pricing strategy is often used as a market entry price for distinctive product or services with low or no initial competition. When supply starts to exceed demand the beginning high price would be dropped.

Penetration pricing strategy is used when the product attains recognition in the market through customer sample purchase stimulated by its low price, marketers might raise the price to the level of competing goods.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 19, Problem 1ALR

Summary Introduction

To differentiate: Between a penetration pricing strategy and a skimming price strategy and under which condition is each most likely to be used.

The amount or value of funds that are required to buy a product is termed as price.

Expert Solution & Answer

Explanation of Solution

The difference between penetration pricing strategy and skimming pricing strategy is as follows:

Skimming pricing strategy: Is where they set a high price comparatively higher than the others. It is also known as market plus pricing.

Penetration pricing strategy: This strategy sets a lower price with respective to the competitor’s price in order to increase the demand and acceptance.

Under which condition is each most likely to be used is as follows:

Skimming pricing strategy is often used as a market entry price for distinctive product or services with low or no initial competition. When supply starts to exceed demand the beginning high price would be dropped.

Penetration pricing strategy is used when the product attains recognition in the market through customer sample purchase stimulated by its low price, marketers might raise the price to the level of competing goods.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 19, Problem 1ALR

Summary Introduction

To differentiate: Between a penetration pricing strategy and a skimming price strategy and under which condition is each most likely to be used.

The amount or value of funds that are required to buy a product is termed as price.

Expert Solution & Answer

Explanation of Solution

The difference between penetration pricing strategy and skimming pricing strategy is as follows:

Skimming pricing strategy: Is where they set a high price comparatively higher than the others. It is also known as market plus pricing.

Penetration pricing strategy: This strategy sets a lower price with respective to the competitor’s price in order to increase the demand and acceptance.

Under which condition is each most likely to be used is as follows:

Skimming pricing strategy is often used as a market entry price for distinctive product or services with low or no initial competition. When supply starts to exceed demand the beginning high price would be dropped.

Penetration pricing strategy is used when the product attains recognition in the market through customer sample purchase stimulated by its low price, marketers might raise the price to the level of competing goods.

Answer 6

Chapter 19, Problem 1ALR

Summary Introduction

To differentiate: Between a penetration pricing strategy and a skimming price strategy and under which condition is each most likely to be used.

The amount or value of funds that are required to buy a product is termed as price.

Expert Solution & Answer

Explanation of Solution

The difference between penetration pricing strategy and skimming pricing strategy is as follows:

Skimming pricing strategy: Is where they set a high price comparatively higher than the others. It is also known as market plus pricing.

Penetration pricing strategy: This strategy sets a lower price with respective to the competitor’s price in order to increase the demand and acceptance.

Under which condition is each most likely to be used is as follows:

Skimming pricing strategy is often used as a market entry price for distinctive product or services with low or no initial competition. When supply starts to exceed demand the beginning high price would be dropped.

Penetration pricing strategy is used when the product attains recognition in the market through customer sample purchase stimulated by its low price, marketers might raise the price to the level of competing goods.

Answer 7

Chapter 19, Problem 1ALR

Summary Introduction

To differentiate: Between a penetration pricing strategy and a skimming price strategy and under which condition is each most likely to be used.

The amount or value of funds that are required to buy a product is termed as price.

Answer 8

Expert Solution & Answer

Explanation of Solution

The difference between penetration pricing strategy and skimming pricing strategy is as follows:

Skimming pricing strategy: Is where they set a high price comparatively higher than the others. It is also known as market plus pricing.

Penetration pricing strategy: This strategy sets a lower price with respective to the competitor’s price in order to increase the demand and acceptance.

Under which condition is each most likely to be used is as follows:

Skimming pricing strategy is often used as a market entry price for distinctive product or services with low or no initial competition. When supply starts to exceed demand the beginning high price would be dropped.

Penetration pricing strategy is used when the product attains recognition in the market through customer sample purchase stimulated by its low price, marketers might raise the price to the level of competing goods.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 19 - Prob. 1ALR Ch. 19 - Prob. 2ALR Ch. 19 - Prob. 3ALR Ch. 19 - Prob. 4ALR Ch. 19 - Prob. 5ALR Ch. 19 - Prob. 6ALR Ch. 19 - Prob. 7ALR Ch. 19 - Prob. 8ALR Ch. 19 - Prob. 9ALR Ch. 19 - Prob. 10ALR

To differentiate: Between a penetration pricing strategy and a skimming price strategy and under which condition is each most likely to be used. The amount or value of funds that are required to buy a product is termed as price.

Concept explainers

To differentiate: Between a penetration pricing strategy and a skimming price strategy and under which condition is each most likely to be used.

The amount or value of funds that are required to buy a product is termed as price.

Explanation of Solution

Want to see more full solutions like this?

Chapter 19 Solutions