Practicing Success
Practicing Success
CUET Preparation Today
| Which of the following is a disadvantage of penetration pricing? |
It establishes long–term price expectations for the product and image preconceptions for the brand and company. This makes it difficult to eventually raise prices. It can backfire if there are close competitors and they also introduce same products at lower price then consumers will think that the company always sells the products at higher prices which will result in consumers abandoning other products of the company also. It is not a viable option when there are strict legal and government regulations regarding consumer rights.
All of the above |
| It establishes long–term price expectations for the product and image preconceptions for the brand and company. This makes it difficult to eventually raise prices. |
| Option 2 and 3 are the disadvantages of Skimming Method. |
