Aacsb analytic blooms remember difficulty 1 easy

Info icon This preview shows pages 144–147. Sign up to view the full content.

View Full Document Right Arrow Icon
AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-07 Explain the difference between a market penetration pricing strategy and a price skimming pricing strategy. Topic: Pricing Strategies 188. (p. 283) Mario is the first retailer in town to sell games for Sony's new PlayStation 3 machine. Mario wants to quickly capture as much of the market for the new games as possible. Mario will likely use a __________ pricing strategy. A. market penetratio n
Image of page 144

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
B. bundling C. price fixing D. reference E. skimming There are two primary new product pricing strategies: skimming, which focuses on selling at a high price to the Innovators and Early Adopters on the diffusion of innovation curve; and market penetration, which focuses on selling at a low price in order to gain market share as quickly as possible. AACSB: Analytic Blooms: Apply Difficulty: 2 Medium Learning Objective: 13-07 Explain the difference between a market penetration pricing strategy and a price skimming pricing strategy. Topic: Pricing Strategies 189. (p. 283) When HP first introduced their Inkjet printers, consumers could only buy refill cartridges from HP. HP made significant profits from the sale of replacement cartridges. In this situation, HP logically used a __________ pricing strategy for their printers. A. market penetratio n B. loss leader C. price fixing D. reference E. skimming There are two primary new product pricing strategies: skimming, which focuses on selling at a high price to the Innovators and Early Adopters on the diffusion of innovation curve; and market penetration, which focuses on selling at a low price in order to gain market share as quickly as possible. In this case, a market penetration strategy makes sense because the sooner customers start using the printers, the sooner HP will start selling ink cartridges. AACSB: Analytic Blooms: Understand Difficulty: 3 Hard Learning Objective: 13-07 Explain the difference between a market penetration pricing strategy and a price skimming pricing strategy. Topic: Pricing Strategies 190. The major objectives associated with a market
Image of page 145
(p. 283) penetration pricing strategy are to: A. capture the high e demand curve an costs. B. build sales and market share. C. minimize customer dissatisfaction and maximize referen D. provide an incentive to purchase a less desirable produ desirable product. E. match competitors' prices and communicate high qualit There are two primary new product pricing strategies: skimming, which focuses on selling at a high price to the Innovators and Early Adopters on the diffusion of innovation curve; and market penetration, which focuses on selling at a low price in order to gain market share as quickly as possible. AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-07 Explain the difference between a market penetration pricing strategy and a price skimming pricing strategy.
Image of page 146

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 147
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern