Pricing is a difficult issue in the introductory stage of the PLC.Companies can follow two distinctive routes for pricing which can be described as ________.
A) Follow the leader and skimming pricing
B) Market penetration and skimming pricing
C) Cost plus and demand driven pricing
D) Market penetration and price sensitive pricing
E) None of the above

Question

Quizplus · Accepted Answer

In the introductory stage of the PLC, the best pricing strategy would be either market penetration or skimming pricing. Market penetration involves setting a relatively low price to gain market share quickly, while skimming pricing involves setting a high price to capture the value of the product to early adopters. Both strategies have their advantages and disadvantages, but they are the most effective when introducing a new product into the market. Cost plus and demand-driven pricing are not ideal for the introductory stage because they focus on maximizing profits instead of gaining market share. Price sensitive pricing is not a distinct pricing strategy, but rather a sensitivity to pricing in general. Following the leader may be an effective strategy in a mature or established market, but it is not ideal for the introductory stage of the PLC.

Pricing Is a Difficult Issue in the Introductory Stage of the PLC.Companies