You are in a meeting about the price strategy to adopt for a product your firm is about to...

Question:

You are in a meeting about the price strategy to adopt for a product your firm is about to introduce into a new market. Jack says, "We should use price skimming." Jane says, "We should use penetration pricing." a) What assumption is Jack making about the dynamics of price elasticity? b) What assumption is Jane making about the dynamics of price elasticity? c) How might you decide between the two alternatives?

Economic Factors of Pricing and Pricing Strategy

Market entry strategy is a planned distribution and delivery method of goods or services to a new target market. While preparing to enter the market with a new product, management must decide on a pricing strategy.

Answer and Explanation:

Become a Study.com member to unlock this answer! Create your account

View this answer

Skimming pricing:- It is policy of high prices during the early period of a product's existence. This can be synchronized with high promotional...

See full answer below.


Learn more about this topic:

Loading...
Economic Factors of Pricing and Pricing Strategy

from

Chapter 11 / Lesson 10
12K

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.


Related to this Question

Explore our homework questions and answers library