Pricing Strategies MY PROGRESS-33% Decision Point: Satchel Pricing Strategy The

Question

Pricing Strategies MY PROGRESS-33% Decision Point: Satchel Pricing Strategy The first product item that you must recommend a pricing strategy for is the satchel. The satchel will be the first of the Carry Tu bags to hit the market. Which of the following market-entry pricing strategies do you recommend? Select an option from the choices below and click Submit Market penetration pricing strategy: Setting the price very low initialy Market skimming pricing strategy: Setting the price very high initially Submit Previous

Explanation / Answer

I will recommend for Market skimming pricing strategy which is setting the price very high initially.

As the satchel will be the first of the Carry Tu bags to hit the market, it doesn't have any competitors. The market demand is unknown and due to new product, consumers will be eager to purchase and try. So, keeping the high price initially will help to cover up the cost quickly and breakeven. Afterward, with competitor products and competition, company may plan to reduce the cost

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.