Outline four strategies of setting the price of a product.

      

Outline four strategies of setting the price of a product.

  

Answers


Martin
Four strategies of setting the prices of a product

1. Skimming pricing

- Charging a high price initially and reducing the price over time
- Commonly used when introducing new & innovative products in the ASPAC region

2. Penetration pricing

- Charging a low price when entering the market to capture market share ? Used when competitors are closing in with similar or better products

3. Intermediate pricing

- Pricing somewhere in between the skimming strategy and the penetration strategy

4. Leasing strategy which is more common for industrial goods e.g.

- Singapore Airlines sold many of their aircraft and lease them back for their operations. There is a growing trend toward leasing consumer goods as well E.g. leasing of office equipment

marto answered the question on February 4, 2019 at 08:59


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