MKTG 4820 Study Guide Exam # 3

MKTG 4820 Study Guide Exam # 3 - Chapter 11 Market skimming...

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Market skimming o Is an approach under which a producer sets a high price for a new high-end product (such as an expensive perfume) or a uniquely differentiated technical product (such as one-of-a-kind software or a very advanced computer). Its objective is to obtain maximum revenue from the market before substitutes products appear. Penetration pricing o Charging a low price in order to penetrate market quickly o Appropriate to saturate market prior to imitation by competitors Companion Products o Products whose sale is dependent upon the sale of primary product Video games are dependent upon the sale of the game console Price fixing o Establishing the price of a product or service, rather than allowing it to be determined naturally through free-market forces o Representatives of two or more companies secretly set similar prices for their products Illegal act because it is anticompetitive Export price escalation o The summation of all cost factors in the distribution channel including ex-works price, shipping costs, tariffs, and distributor mark-up o Currency fluctuation o Currency fluctuations are simply the ongoing changes between the relative values of the currency issued by one country when compared to a different currency. o Effects when a company's home currency strengthens; this is an unfavorable turn of events for the typical exporter because overseas revenues are reduced when translated into the home country currency. Arbitrage
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This note was uploaded on 04/02/2012 for the course MKTG 4820 taught by Professor Susancarley during the Fall '09 term at Kennesaw.

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MKTG 4820 Study Guide Exam # 3 - Chapter 11 Market skimming...

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