Question

Study the relation between the first pair and complete the analogy.

Luxury electronic watch : Price skimming :: Mass market consumer goods : ______

Answer 1

Luxury electronic watch : Price skimming :: Mass market consumer goods : Penetration pricing

Explanation:

Price skimming is a pricing strategy that involves setting a high initial price to attract customers who are prepared to pay more for a luxury good. On the other hand, penetration pricing, which entails setting a low starting price to swiftly draw in a large number of clients, is frequently used for mass market consumer items.