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Question
Which pricing strategy will be used to launch a high end auto motors?
Options
Parity Pricing
Skimming Pricing
Cost Plus pricing
Penetrating pricing
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Solution
Skimming Pricing
Explanation:
Skimming pricing is a strategy where a high initial price is set for a new, high-end product to maximize profits from customers willing to pay a premium. This approach is often used for luxury or high-tech products, such as high-end auto motors, to recover development costs quickly and create a perception of exclusivity and superior quality.
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RELATED QUESTIONS
Explain the below mentioned pricing strategy:
Skimming pricing strategy
______ is the most common method used for pricing.
______ determines the sales volume and the profit margins.
Parity pricing is not relevant under the present marketing conditions. Justify either for or against by giving two reasons.
"Competition based pricing is ideal for non-branded products." Comment.
Give one difference between skimming pricing and penetrating pricing.
What is skimming pricing?
What is Cost plus pricing policy?
What are the conditions under which parity pricing is desirable?
| 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.
