Read the passage carefully and answer the questions.

A company called "EcoTech Appliances" has recently launched a new line of eco-friendly home appliances designed to help consumers save energy and reduce their carbon footprint.

Marketing Strategies used by the Company:

1. The company has developed eco-friendly appliances with energy-efficient features and environmentally sustainable materials. The product is priced slightly higher than regular appliances but is positioned as a long-term investment in sustainability.

2. Eco Tech has adopted a premium skimming pricing strategy for eco-friendly appliances, positioning them as high-quality, sustainable products.

3. The products are available on both online and offline channels, including large retail stores and the company's e-commerce website.

4. EcoTech employs various promotional tools to create awareness and persuade customers to buy their products:

• -The company runs TV and digital ads showcasing the energy-saving benefits of their appliances and their commitment to sustainability.
• -Sales representatives are trained to interact with customers in retail stores, explaining the benefits of the products and offering personalized recommendations based on individual needs.
• -Eco Tech has garnered attention from environmental organizations and media outlets due to their focus on eco-friendly products, resulting in positive press coverage and word-of-mouth promotion.

Which pricing strategy is used by EcoTech Appliances for its products?

Skimming pricing

The correct answer is option 3- Skimming pricing.

Skimming pricing strategy is used by EcoTech Appliances for its products.

EcoTech Appliances has adopted a premium skimming pricing strategy, as mentioned in the passage. This means they have set a higher initial price for their eco-friendly products to reflect their high quality and sustainability features.

Skimming pricing is used to Maximize profits from early adopters who are willing to pay more, Position the product as premium or high-end, Slowly lower the price over time if needed.

OTHER OPTIONS

• Competitive pricing – setting prices based on competitors.

• Penetration pricing – setting a low price to gain market share.

• Cost-based pricing – setting price based on production cost plus markup.