Penetration pricing strategy

Description:It can often increase both market share and sales volume. The major disadvantage, however, is that an increase in sales volume may not lead to a profit if prices must remain low. Also, if the low price is part of an introductory campaign, curiosity may prompt customers to choose the brand initially, but once the price begins to rise or levels with a competing brand, they may switch back to the competitor. Penetration Pricing Versus Skimming Skimming is the opposite pricing strategy to penetration pricing. Using skimming, they market products at high prices with relatively high margins.

Views: 3261 Date: 2018-10-28 Favorited: 89