Advertisements
Advertisements
Question
Discuss the cons of Penetrating Pricing Policy.
Answer in Brief
Advertisements
Solution
- Price Wars: Pricing strategies can trigger price wars, which can negatively impact the profitability of the entire industry.
- Short-term gains: The advantages of this approach may be short-lived if not supported by long-term strategies for customer retention and product differentiation.
shaalaa.com
Price - Pricing Strategies
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
Explain the below mentioned pricing strategy:
Penetrating pricing strategy
______ is the most common method used for pricing.
Setting a price below than that of the competition is called ______.
Factors which do not influence price determination is ______.
Parity pricing is not relevant under the present marketing conditions. Justify either for or against by giving two reasons.
Skimming pricing policy is ideal for introducing a product in the FMCG sector. Justify for or against.
What is Cost plus pricing policy?
State two disadvantages of Cost plus pricing policy.
| Evergreen Cosmetics is planning to launch a new range of 'anti-wrinkle creams' in the Indian market. They conducted a market survey and found potential competition from Remain Young. Since they are targeting the higher strata of society, the cream is being priced much higher than their competitors. They plan to use the television as a media to advertise this anti-wrinkle cream as opposed to print media which is largely used by them for their other products. Officials at Evergreen Cosmetics feel that with the correct style of promotion, they could easily be successful in the market. |
- Identify and explain the pricing strategy that is being used by Evergreen Cosmetics.
- Describe any two qualities that a salesman selling this product should possess.
- Explain any two tools of sales promotion that can be used here.
What pricing strategy will be used to launch shampoo?
