Companies facing the challenge of setting prices for the first time can choose between two broad strategies: ________.
A)value-added pricing and market-level pricing
B)target cost pricing and competitive pricing
C)target cost pricing and market-skimming pricing
D)market-penetration pricing and market-skimming pricing
E)market-penetration pricing and value-added pricing

Question

Quizplus · Accepted Answer

For companies facing the challenge of setting prices for the first time, the best choices are market-penetration pricing and market-skimming pricing. Market-penetration pricing is a strategy of setting a low price to attract a large number of buyers and a large market share quickly. Market-skimming pricing is a strategy of setting a high price to maximize profits in the short term. These strategies are appropriate for different situations and can help companies establish a foothold in the market or quickly generate profits, respectively.

Companies Facing the Challenge of Setting Prices for the First