18 Questions
What is a characteristic of the market penetration pricing strategy?
Price sensitivity in the market
What is the primary objective of market penetration pricing?
To gain market share
What is the relationship between production and distribution costs and sales growth in a market penetration pricing strategy?
Inversely proportional
What is the primary advantage of market penetration pricing?
Barriers to entry for new competitors
What is the main difference between market penetration pricing and product line pricing?
Pricing strategy objective
How does market penetration pricing affect competitors?
It deters new competitors
What is the primary goal of product bundle pricing?
To increase the profit of the organization through large volume of sales
Which pricing strategy involves setting prices to have a psychological or emotional impact on the buyer?
Psychological Pricing
What is the primary goal of a market penetration pricing strategy?
To quickly gain market share and attract a large number of buyers
What is an example of a company using product bundle pricing?
A travel agency offering a bundled tour package at a reduced price
Which of the following is a characteristic of a market skimming pricing strategy?
Setting a high initial price to create a high-quality product image
What is the result of product bundle pricing on the profit of an organization?
It increases the profit of the organization through large volume sales
Which of the following is NOT an example of psychological pricing?
Offering a product at a fixed price for a specific period of time
Which company is an example of a market penetration pricing strategy?
Banglalink
What is the primary difference between market skimming and market penetration pricing strategies?
Initial price level
What is the main benefit of product bundle pricing to customers?
It offers customers a reduced price for multiple products
What is the main advantage of a market penetration pricing strategy?
Quick market share gain
Why is it important to have a high-quality product image in a market skimming pricing strategy?
To support the high initial price
Test your knowledge of different pricing strategies, including market penetration pricing and product line pricing, and their characteristics.
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