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Question

Match the pricing strategies in List - I with their appropriate explanation in List - II :

List - IList - II
(a) Bundle pricing(i) Price for any product is deliberately fixed lower than the prices of competitors
(b) Parity pricing(ii) Prices fixed for similar products and services are the same as competitor’s prices
(c) Penetration pricing(iii) Price fixation is allowed at levels higher than competitors
(d) Premium pricing(iv) Involves being the leader in fixing prices by benchmarking them
(v) Set of products and services are clubbed together and charged at lower than the sum of individual elements in the mix

The correct answer is
(a)-(v), (b)-(ii), (c)-(i), (d)-(iii)

The question requires matching pricing strategies from List I with their corresponding explanations in List II.

Pricing Strategy Explanations

Let's analyze each pricing strategy:

  • Bundle pricing (a): This involves combining multiple products or services and selling them as a single package, often at a reduced price compared to buying them individually. This aligns with explanation (v): "Set of products and services are clubbed together and charged at lower than the sum of individual elements in the mix".
  • Parity pricing (b): This strategy involves setting prices at the same level as competitors for similar products or services. This matches explanation (ii): "Prices fixed for similar products and services are the same as competitor’s prices".
  • Penetration pricing (c): This strategy involves setting a low initial price for a new product or service to quickly attract a large number of customers and gain market share. This corresponds to explanation (i): "Price for any product is deliberately fixed lower than the prices of competitors".
  • Premium pricing (d): This strategy involves setting a high price point to signal high quality, luxury, or exclusivity to consumers. This aligns with explanation (iii): "Price fixation is allowed at levels higher than competitors".

Matching Summary

Based on the definitions:

  • (a) Bundle pricing matches (v).
  • (b) Parity pricing matches (ii).
  • (c) Penetration pricing matches (i).
  • (d) Premium pricing matches (iii).

Therefore, the correct match is (a)-(v), (b)-(ii), (c)-(i), (d)-(iii).

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Important Questions from Marketing mix

  1. Which of the following statements represents marketing ?

  2. Which one is not a part of Marketing Mix ?
  3. Give the correct sequence for Marketing strategy.
    (i) Promotion
    (ii) Packing
    (iii) Analysing
    (iv) Developing
    (v) Distribution
    (vi) Pricing
    Code :
  4. The step after 'concept testing' in the new product development process is:

  5. Which of the following best describes the 4 A’s from the buyer’s viewpoint ?

    A. Adjustability

    B. Awareness

    C. Accessibility

    D. Affordability

    E. Acceptability

    Choose the correct answer from the options given below :

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