Question 7
POST_UTME_OSUSTECH
•
2025
•
COMMERCE
•
objective
A firm 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 differ.
Answer Options
A.
High-low pricing strategy: This strategy involves charging a high price for a product to create an illusion of scarcity, and then reducing the price to attract more customers. Penetration pricing strategy: This strategy involves charging a low price for a product to attract a large number of customers and gain market share.
B.
High-low pricing strategy: This strategy involves charging a low price for a product to attract a large number of customers, and then increasing the price to maximize profits. Penetration pricing strategy: This strategy involves charging a high price for a product to create an illusion of scarcity, and then reducing the price to attract more customers.
Correct Answer
C.
High-low pricing strategy: This strategy involves charging a high price for a product to create an illusion of scarcity, and then reducing the price to attract more customers. Penetration pricing strategy: This strategy involves charging a low price for a product to attract a large number of customers and gain market share, but at the expense of profit margins.
D.
High-low pricing strategy: This strategy involves charging a low price for a product to attract a large number of customers, and then increasing the price to maximize profits. Penetration pricing strategy: This strategy involves charging a high price for a product to create an illusion of scarcity, and then reducing the price to attract more customers, but at the expense of profit margins.
Correct Answer
C
Correct Option:
High-low pricing strategy: This strategy involves charging a high price for a product to create an illusion of scarcity, and then reducing the price to attract more customers. Penetration pricing strategy: This strategy involves charging a low price for a product to attract a large number of customers and gain market share, but at the expense of profit margins.
About This Question
This is
Post Utme Osustech
2025
Commerce
Question 7.
It is one of the
objective
questions from the
2025
Post Utme Osustech
Commerce
examination.