Pricing Strategies

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George K


Date added:

October 9, 2015








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7 / 1709


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This strategy helps marketers set prices. There are many ways to price a product. The following, figure 1.1, shows a list of five major types of pricing strategies. (Business, 8th Ed., pg 421) Figure 1.1 [pic] New-Product Pricing There are two primary types of new product pricing strategies, price skimming and penetration pricing...
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An organization can use one or both of them over a calculated period of time. Price Skimming involves charging the highest price possible for a short time where a new, innovative, or much-improved product is launched onto a market. The objective with skimming is to “skim the cream” off customers who are willing to pay more to have the product sooner...
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