Question

(a) What pricing objective(s) is a skimming pricing policy most likely implementing? Is the same true for a penetration pricing policy?

(b) Which pricing policy is probably most appropriate for each of the following products? i. a DVD of a best selling movie ii. a skin patch to help smokers quit iii. a “smart” infant/baby car seat that alerts the driver’s cell phone when the child has unbuckled while the car is in motion, the child was accidentally left behind in the car, and the car is too hot or too cold iv. Nintendo’s online SWITCH gaming subscription

Answer 1

Answer a : Skimming pricing policy has an objective that involves the use of higher price relative to competitive offering. The main objective of this pricing strategic is that setting a higher price for new product to skim maximum revenue layer from the particular segment of customer who are willing to pay higher price.

Pentration pricing policy has a policy when. In the market new product has been launched lower price of the product has been charged in order to grab maximum share and when the customer used to with the product they has increased price. Price of the product has increased in long run when they are fully recognize by the customers.

b ) 1. A DvD of a best selling movie : Skimming pricing strategy has been adopted in order to earn maximum revenue they received and after that they lowered the price of the product.

2. A skin patch to help smokers to quit :Skimming pricing has been adopted as the person who need to quit smoke is willing to paid higher price for the product.

3.a smart infant baby seater marketer used pentration pricing policy in order to gain maximum share and people are used to this product then they are able to paid higher price for the same product.

4: Nintendo online switch game subscription marketer used pentration price in order to attract maximum number of people.Once they have habit than the marketer charges higher price for the product.