In which step of the price setting process would a new product manager be deciding whether to adopt a penetration or a skimming pricing strategy for a new product she is about to introduce to the market?
A)Make special adjustments to the list or quoted price.
B)Select an approximate price level.
C)Estimate demand and revenue.
D)Identify price constraints and objectives.

Question

Quizplus · Accepted Answer

The decision between a penetration or skimming pricing strategy typically occurs during the selection of an approximate price level, which is an early step in the price setting process. In this step, the product manager considers various factors such as the product's unique features, the competition, and the target market to determine whether to set the price high (skimming) or low (penetration) to maximize revenue and market share.

In Which Step of the Price Setting Process Would a New