Rob is opening a carpet business - a highly competitive business with several existing companies....

Question:

Rob is opening a carpet business - a highly competitive business with several existing companies. He plans on sending out some direct mail advertising with the objective of getting people to try his service and build a customer base. What pricing strategy would you advise him to use?

1) Penetration

2) Cost Plus

3) Skimming

4) Premium

5) Everyday low pricing

Pricing Strategy:

Pricing strategy refers to the ways to find a competitive price of a service or product. It includes the four P's of management product, price, place, and promotion, competition, market demand, etc.

Answer and Explanation:

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Penetration strategy refers to a pricing strategy which is adopted by a business in order to attract more and more customers to a new service or a...

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Economic Factors of Pricing and Pricing Strategy

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Chapter 11 / Lesson 10
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When a company makes a change in pricing, it is usually in response to inflation or recession. These two tactics are explained to better understand the intricacies involved in devising and implementing a cost strategy.


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