Question 17
POST_UTME_BABCOCK_UNIVERSITY
•
2017
•
COMMERCE
•
objective
A company is considering two different marketing strategies: a high-low pricing strategy and a penetration pricing strategy. Discuss the advantages and disadvantages of each strategy, and explain how they can be used to achieve the company's marketing objectives.
Answer Options
Correct Answer
A.
High-low pricing strategy: This strategy involves charging high prices for a product during its introduction and then reducing the price over time. Advantages: creates a sense of urgency, increases perceived value. Disadvantages: may deter price-sensitive customers.
B.
Penetration pricing strategy: This strategy involves charging low prices for a product to attract a large market share. Advantages: increases market share, attracts price-sensitive customers. Disadvantages: may lead to price wars, reduces profit margins.
C.
High-low pricing strategy: This strategy involves charging low prices for a product during its introduction and then increasing the price over time. Advantages: increases market share, attracts price-sensitive customers. Disadvantages: may lead to price wars, reduces profit margins.
D.
Penetration pricing strategy: This strategy involves charging high prices for a product to create a sense of exclusivity. Advantages: creates a sense of exclusivity, increases perceived value. Disadvantages: may deter price-sensitive customers.
Correct Answer
A
Correct Option:
High-low pricing strategy: This strategy involves charging high prices for a product during its introduction and then reducing the price over time. Advantages: creates a sense of urgency, increases perceived value. Disadvantages: may deter price-sensitive customers.
About This Question
This is
Post Utme Babcock University
2017
Commerce
Question 17.
It is one of the
objective
questions from the
2017
Post Utme Babcock University
Commerce
examination.