1.

Differentiate between price skimming and price penetration technique of pricing.

Answer»
Price SkimmingPrice Penetrating
1.Goods are sold at higher prices so that fewer sales are needed to break even.Price is initially set at a price lower than the eventual market price to attract new customers.
2.It is usually employed to reimburse the cost of investment of the original cost It has a marketing objective of increasing market share rather than to earn profit.
3.It is used to target ‘early adopters’ of a product or service.It works on the expectation that customers will switch to the new brand because of the low price


Discussion

No Comment Found

Related InterviewSolutions