1. What pricing objective(s) a skimming pricing policy most likely implementing?

Question

1. What pricing objective(s) a skimming pricing policy most likely implementing? Is the same true for a penetration pricing policy? Which pricing policy is probably most appropriate for each of the following products?

a. The NEW battery operated auto called Flash: no gasoline needed – 24 hour rechargeable battery ________________

b. a new type of home flashlight _________________

c. a revolutionary skin patch which complete removes the urge to smoke___________

d. Felix protein Shakes__________________

Explanation / Answer

Price skimming is mainly used when the product is new, its main objective is profit maximization. penetration pricing policy main objectives is to set higher price in comparision to the competitors , it mainly try to get sales oriented objectives. a. skimming pricing, b. penetration pricing. c. skimming pricing d. penetration pricing.

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