Aacsb analytic blooms apply difficulty 3 hard

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AACSB: Analytic Blooms: Apply 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 145. (p. 285) For marketers using a price skimming strategy, once the initial demand is met for new and innovative products, they will likely:
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A. leave the market. B. discontinue the product and create a new one. C. offer deep discounts in order to create a loss leader pric D. lower the price to capture the next most price sensitive E. use zone pricing to maximize differences. 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. With skimming, the price can be gradually dropped as increasingly price-sensitive buyers enter the market. 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. Topic: Pricing Strategies 146. (p. 284) When Burroughs-Welcome introduced the first anti-AIDS drugs, they initially set the price at $10,000 for a year's supply. Burroughs-Welcome was probably pursuing a __________ pricing strategy. A. skim ming B. introductory C. slotting allowance D. market penetration E. cost-based 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. Topic: Pricing Strategies
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147. (p. 284) When Apple Computer Company introduced the iPhone--a combination phone, MP3 player, and Internet access device--in 2007, it was priced at $499, considerably higher than either the iPod or competing cell phones. Apple was probably pursuing a __________ pricing strategy. A. market penetratio n B. slotting allowance C. price fixing D. reference price 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: Understand Difficulty: 3 Hard Learning Objective: 13-07 Explain the difference between a market penetration pricing strategy and a price skimming pricing strategy.
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