a market-skimming pricing strategy should not be used for a new product when ________.,

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potatoes, vegetable, market @ Pixabay

When should I use a market-skimming pricing strategy for my new product? A market- skimming pricing strategy should not be used when the following: 1. You are selling an expensive item, which means that your target customer is generally high income and low volume. 2. Your product has been in the marketplace for a long time, so you have established brand equity – this will make it difficult to price aggressively (although there are exceptions). A market-skimming pricing strategy should be used when the following: The following conditions are met when a business can use this type of pricing strategy to their advantage: You are selling an expensive item, which means that your target customer is generally high income and low volume. Your product has been in the marketplace for a long time (or you do not have any brand equity), so you want to make it easier for customers to purchase by aggressively pricing your product. You may also price aggressively if you need short term cash inflow from sales. If either one or both of these conditions apply then consider using this type of pricing strategy. This will allow more people who would normally balk at higher prices because they are outbid by

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