Question

Trying to sell a firm's new product to a large market at one low price is...

Trying to sell a firm's new product to a large market at one low price is known as ________.

Business   Operations-Management   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Penetration pricing, and, value-based pricing

Penetration pricing - New product, low price

Setting a low price to attract consumers, and, gain market share. The price is raised after a growth in market share. The price is below the long-range market price to get recognition for the product.

Value-based pricing - Low price for a relatively new product to establish the product in the market. Overly high price will have a negative effect on the sale of a new product.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose the market price that a firm can sell its product for is a function of...
Suppose the market price that a firm can sell its product for is a function of how much it and the firm's competitor produce so that p = 136 - (x1 + x2) where p is the selling price, x1 is the firm's production, and x2 is the competitor s production. The firm's cost function is 28 + 3.6*x1. If the firm's competitor produces x2 = 27 units, how much should the firm produce if it wants to maximize the...
Micro-Data Systems is trying to decide whether or not to produce and sell a new product...
Micro-Data Systems is trying to decide whether or not to produce and sell a new product it developed. The product engineer argued that "it would be a waste of the $5 million used in development to not produce and sell the product." Do you agree or disagree with the above statement? Briefly explain your reasoning.
Consider two firms competing to sell a homogeneous product by setting price. The inverse demand curve...
Consider two firms competing to sell a homogeneous product by setting price. The inverse demand curve is given by P = 6 − Q. If each firm's cost function is Ci(Qi) = 2Qi, then consumer surplus in this market is:
Think of a product that you have used and liked. If you were trying to sell...
Think of a product that you have used and liked. If you were trying to sell that product, what rational appeals would you use? What emotional appeals would you use? Try to sell that product to your classmates.
RET Inc. currently has one product, low-priced stoves. RET Inc.  has decided to sell a new line...
RET Inc. currently has one product, low-priced stoves. RET Inc.  has decided to sell a new line of medium-priced stoves. Sales revenues for the new line of stoves are estimated at $50 million a year. Variable costs are 60% of sales.  The project is expected to last 10 years. Also, non-variable costs are $10,000,000 per year. The company has spent $4,000,000 in research and a marketing study that determined the company will lose (cannibalization) $10 million in sales a year of its...
RET Inc. currently has one product, low-priced stoves. RET Inc.  has decided to sell a new line...
RET Inc. currently has one product, low-priced stoves. RET Inc.  has decided to sell a new line of medium-priced stoves. Sales revenues for the new line of stoves are estimated at $50 million a year. Variable costs are 60% of sales.  The project is expected to last 10 years. Also, non-variable costs are $10,000,000 per year. The company has spent $4,000,000 in research and a marketing study that determined the company will lose (cannibalization) $10 million in sales a year of its...
A product that has low market share in a growing market - what would this product...
A product that has low market share in a growing market - what would this product be classified under (based on the Boston Consulting Group matrix)?
A manufacturer is planning to sell a new product at the price of 250250 dollars per...
A manufacturer is planning to sell a new product at the price of 250250 dollars per unit and estimates that if xx thousand dollars is spent on development and yy thousand dollars is spent on promotion, consumers will buy approximately 170yy+6+170xx+3170yy+6+170xx+3 units of the product. If manufacturing costs for the product are 160160 dollars per unit, how much should the manufacturer spend on development and how much on promotion to generate the largest possible profit? Round your answer to the...
Assume that the price elasticity of demand is - 2 for a certain firm's product. If...
Assume that the price elasticity of demand is - 2 for a certain firm's product. If the firm reduces price, what can the firm's managers to be the impact on total revenue? Explain.
Jake owns The Corner Market which he is trying to sell so that he can retire...
Jake owns The Corner Market which he is trying to sell so that he can retire and travel. The Corner Market owns the building in which it is located. This building was built at a cost of $1,200,000 and is currently appraised at $1,470,000. The counters and fixtures originally cost $721,000 and are currently valued at $411,000. The inventory is valued on the balance sheet at $341,000 and has a retail market value equal to 1.2 times its cost. Jake...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT