Question

Suppose you are the VP of marketing for Tech-Temps, a Chicago-based temporary employment agency that specializes in providing companies with temporary workers trained in technical skills (like welding, drafting, programming). You are thinking of expanding into the Cleveland market. Would you choose a price skimming or penetration pricing strategy? Why? Provide a rationale for your decision that is consistent with what you learned int his chapter.

Answer 1

Cleveland Market is the oldest market with numerous small business units all around the market of all kinds. Basically the market is crowded with numerous options for customer to choose from.

So when Tech Temps want to enter the segment, they need to enter with penetration pricing, which allows them to get initial client's/customers with this pricing strategy, as this strategy will help to offer services at the lowest of lowest price to contribute growth of tech temps market base.

As we could build a sustainable customer base, we can opt for changing into price skimming with new services