Professors on the Go! Chapter 11 Pricing Products: Pricing Strategies 1. Key Concepts Market-skimming and penetration pricing, Product mix pricing strategies • Why would Palm choose market-skimming pricing rather than market-penetration pricing for a new line of smartphones? • Why is product bundle pricing effective? • Using the categories found in Table 11.1, find an advertisement that illustrates each of the strategies. Demonstrate why the advertisement fits the category. • Create a scenario for the use of a market-skimming strategy. Create a second for a market-penetration strategy. • How can product bundling pricing be used by a university or college? 2. Key Concepts Price-adjustment strategies, Initiating and responding to price changes • Psychological pricing is a pricing-adjustment strategy often used by retailers. Explain this pricing strategy. How is it tied to the concept of reference prices? • Find five examples of psychological pricing. Discuss what you have found
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