2 penetration pricing is advisable in case of a

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2. Penetration pricing is advisable in case of a limited potential market. 3. The price skimming strategy can be applied in any phase of the product life cycle. 4. Penetration pricing can attract non-users. 5. Penetration pricing is applicable where economies of scale are not possible. The correct answer to this question is option 4 . Penetration pricing is discussed on pages 468 to 469 in the prescribed book. If you think about the purpose of penetration pricing it becomes clear that it is to increase market share. It can, for example, be achieved by persuading existing users to purchase more of the product and/or to persuade non-users to start using the product. QUESTION 6 Pick n Pay has decided to market an economic coffee in a plain packet comprising a strong paper bag without any colourful design on it. The packet only displays the words COFFEE and "strong", "mild" or "light" in bold letters on it as well as a small PnP emblem in the upper left- hand corner. This is an example of a(n) … 1. family brand. 2. retailer brand. 3. generic brand. 4. individual brand. 5. manufacturer brand. The correct answer to this problem is option 2. The fact that the P ick „n Pay logo is on the package makes this a dealer brand, because the dealer is identified on the package. This is clearly explained in section 8.3.1.2 in your study guide.
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