Find the most appropriate sequence of life-cycle of price for a product, from the initial stage to the mature stage.
Target price → Penetration price → Value - based price → Limit price → Niche price
Over a product's life cycle the pricing approach typically evolves as the market changes from the introduction stage to maturity.
In the introduction stage a firm may set a high skimming price to recover development costs from early adopters, then move to a penetration price to build volume and share as the market grows, adopt a competitive price during the crowded growth-to-maturity phase, and finally rely on value-based pricing at maturity to hold customers.
The other sequences reverse this natural progression from the initial to the mature stage.
Hence the appropriate sequence begins with a skimming price and ends with value-based pricing. [Note: this question's options could not be verified against the source and it is kept non-public pending confirmation.]
Similar Questions
Find the most appropriate sequence of life-cycle of price for a product, from the initial stage to the mature stage.
After determining its pricing objectives, what is the next logical step a company should take in setting its pricing policy ?
The practice of selling below cost, with an intention to destroying the competitor is referred to as :
Select the correct sequence of steps in setting a pricing policy:
(a) Determining Demand
(b) Analysing competitors' costs, prices and offers
(c) Selecting the Final Price
(d) Selecting the Pricing Objective
(e) Estimating costs
(f) Selecting a pricing method
Codes:
The price setting method most closely corresponding to the concept of product positioning is:
A company prices a 2 litre bottle of its mineral water at ₹ 30 but 60 ml of the same water in a moisturizer spray for ₹ 75. This is an example of which one of the following pricing practices?
When the Companies pay less attention to its own costs or demands and bases its price largely on competitors’ prices, then it is known as :
The practice of selling below cost, with an intention to destroying the competitor is referred to as:
After determining its pricing objectives, what is the next logical step a company should take in setting its pricing policy?
Pricing decisions are most complex at which stage of the product life cycle?
Important Questions from Pricing decisions
Pricing practice of setting a price target and then developing a product that would allow the firm to maximise total profit at that price is called:
Which of the following is the characteristic of price?
In which of the following price adjustment strategies. a company reduces prices to reward customer responses such as volume purchases, paying early or promoting the product?
The consumer's price sensitivity is / are influenced by
A. Who bears the cost
B. What percentage of total expenditure does the product represent
C. Who bears the cost and type of retailer from where customer purchases
D. Consumption of product by the customer
E. Knowledge about the product
Choose the most appropriate answer from the options given below:
- Which of the following are the informal pricing methods ?
I. Cost plus
II. Competitive
III. Rate of return
IV. Trial and error
Codes :
