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Places such as gas stations or discount stores.
They lower the price than other stores to attract newcustomers. It is more likely that the customer will switch to that store/company because of their lower price. But of course, the price will be raised later once this market share is gained.
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∙ 10y ago
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Who uses penetration pricing?
Penetration pricing is mainly used by Supermarkets, to attract more customers into their stores. However, this strategy is now being used by small retailers too.
What is the purpose of volume pricing?
When a company uses a volume-pricing objective, it is seeking sales maximization within predetermined profit guidelines. A company using this objective prices a product lower than normal but expects to make up the difference with a higher sales volume.
Example of company uses mainframe computer?
IBM or Microsoft.
What is the difference between target costing and cost-plus pricing?
Target Costing: It is the costing process in which company tries to reduces all costs of product to limit the selling price at specific targeted selling price. Cost Plus pricing: It is pricing method in which company uses all costs plus certain percentage of that cost as a profit margin to set selling price.
What is Product Line Pricing?
Product line pricing is a pricing strategy that uses one product with various class distinctions. An example would be a car model that has various model types that change with performance and quality. This pricing process is evaluated through consumer value perception, production costs of upgrades, and other cost and demand factors.
What is the differences between cost-based pricing or market-based pricing?
Cost based pricing uses the costs that were invested in producing the goods. In market based pricing, supply and demand are the key factors that determine price.
What company uses the discrimination and fairness paradigm?
Most extreme example is the United States Army.
What is an example of channel of distribution?
Name a company that uses conventional distribution channels to sell their products
Uses of computers in a shop?
They are used for pricing and store warehouse checking.
What is an example of a conventional distribution channel?
Name a company that uses conventional distribution channels to sell their products
What company uses the slogan be true?
which company uses the slogan "be true"
What is the pricing strategy used by Coca-Cola?
Coca-Cola keeps in mind that price should complement demand of the public for the product. The company should receive the maximum amount of revenue possible for the product. Price should be neither too high nor too low in comparison to their competitors. Price must reflect the viewpoint of their target audience.
