Advertisements
Advertisements
प्रश्न
What pricing strategy will be used to launch shampoo?
Advertisements
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.
APPEARS IN
संबंधित प्रश्न
The strategy of introducing new product in existing market is classified as ______.
Introducing a product at low price and increasing the price once the brand succeeds is known as ______ pricing.
Selling price = Total cost per unit + Desired profit per unit is the formula to fix prices under which Pricing Strategy?
Factors which do not influence price determination is ______.
What is parity pricing?
Mention the advantages of cost plus pricing.
"Competition based pricing is ideal for non-branded products." Comment.
“In a competitive market, parity pricing is the appropriate strategy.” Justify either for or against.
State two disadvantages of Cost plus pricing policy.
"Penetrating pricing leads to setting a high initial price". Comment
