Penetration pricing and skimming are long-term strategies used when new products are first introduced into the...
Penetration pricing and skimming are long-term strategies used when new products are first introduced into the market.
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Homework Answers
Price skimming is a pricing strategy by which a firm charges the highest initial price that the customers will pay. As the demand of the first customers are satisfied, the firm lowers the prices to attract others, more price sensitive segment.
Penetration pricing is a pricing strategy where the price of a product is initially set low to rapidly reacha wide fraction of the market and initiate word of mouth.
The correct option therefore is TRUE.
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Penetration pricing and skimming are long-term strategies used
when new products are first introduced into the...
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