Multiple choice question 10 and 11 (1 Viewer)

[culo]

the question with the diagram showing relative market position of Pa and PY

what was the answer for question 10

i believe both c and d are wrong

but i also believe a and b both have elements that are correct, but also element that are not

technicaly, increaing prices (b) is not an official syllabus stragey, though that would work

and technicaly by definition, skimming (a) is only used for innovative new products (according to the text book)

any thoughts.

do you think they may give both?

 

[conics2008]

well i put loss leaders, but still managed to score a 18 xD

 

[paunchypig]

10. Just because they ask for strategies, doesn't mean you narrow it down to the only strategies you know (ie pricing strategies). There's a thing called price and quality interaction. When increasing the price, the perceived quality of the product is enhanced. Called prestige pricing. Skimming on the other hand will better fit the scenario if they developed a new, innovative product and wish to profit as much as they can.
Skimming is just illogical, B is the answer.

11. C. You don't need an explanation for that.

 

[alphaapple]

with pricing one skimming and penetration cant be cause you use these when you start marketing the product.This rules out these to loss leader is a no brainer i cnat be.INcreased pricing is not a text book strategy but if u think about it if you increase the price to make the products "percieved value" increase this is a pricing strategy so increased pricing is the only correct strategy.
Skimming cant be as it is used for products and the price eventually lowers such as an xbox if u use skimming the price lowers after say 3 months to try and make more sales.Where as it set high to try and get as much money from hardcore fanatics and impatient people

good luck with your exams : ps im not rly that smart so i may be wrong