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प्रश्न
What pricing strategy will be used to launch shampoo?
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उत्तर
Penetrating pricing
Shampoo is a widely used Fast Moving Consumer Good (FMCG). Penetrating pricing is acceptable for this product.
This technique involves setting a low initial price so that the brand quickly gains popularity and market share. Shampoo demand is very elastic, which means that lowering the price can significantly increase demand. There is also strong competition in the shampoo business, so a cheap starting price helps to limit the entry of new companies and obtain widespread adoption. For example, shampoo sachets are sold at extremely low prices in order to target the rural and middle-class markets.
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संबंधित प्रश्न
State any two advantages of cost-plus pricing strategy.
Explain the below mentioned pricing strategy:
Penetrating pricing strategy
It is also known as ‘going rate pricing’ or competition based pricing.
______ is the most common method used for pricing.
Setting a price below than that of the competition is called ______.
______ determines the sales volume and the profit margins.
Which pricing strategy will be used to launch a high end auto motors?
Give two conditions under which parity pricing is desirable.
Identify two desirable conditions under penetrating pricing.
Discuss the pros of Penetrating Pricing Policy.
