Marketing Ch. 19

Marketing Ch 19 - Sarah Anderson Marketing Ch 19 David Smith Page 665 Assurance of Learning Questions 1,3,4,7&8 1 What is the difference between a

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Sarah Anderson Marketing Ch. 19 David Smith Page 665: Assurance of Learning; Questions 1,3,4,7 &8 1. What is the difference between a skimming price strategy and a penetration price strategy? Under which circumstances is each most likely to be used? Skimming pricing strategies involve intentionally setting a relatively high price compared with the prices of competing products. It is more commonly used as a market entry price for distinctive goods or serves wit little or no initial competition. Penetration price strategy sets a low price as a major marketing weapon. Marketers often price products noticeably lower than competing offerings when they enter new industries characterized by dozens of competing brands. 3. What is the difference between a list price and a market price? List prices are the rates normally quoted to potential buyers. While market prices may or may not equal the list price. They are a price a consumer or marketing intermediary actually pays for a product after subtracting any discounts, allowances, or rebates from the list price.
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This note was uploaded on 05/11/2011 for the course ECON 2000 taught by Professor Paulkivi during the Spring '11 term at Bemidji State.

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Marketing Ch 19 - Sarah Anderson Marketing Ch 19 David Smith Page 665 Assurance of Learning Questions 1,3,4,7&8 1 What is the difference between a

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