When Sports 360,a sports bar in New York,saw yet another sports bar open up across the street it knew that it would have to lower its price again to stay in business.The city already had too many sports bars and Sports 360 intended on being one of those left after the inevitable shake out.The best pricing strategy for Sports 360 will be:
A) premium pricing.
B) market skimming.
C) survival pricing.
D) a freemium program.

Question

Quizplus · Accepted Answer

The situation described calls for survival pricing, which involves lowering prices to stay competitive and keep the business afloat. Since there are already too many sports bars in the city, premium pricing and market skimming are not viable options as customers will simply choose a cheaper alternative. A freemium program may also not be effective in this situation as it involves offering a basic service for free and charging for premium features, which may not be attractive to customers looking for a sports bar experience.

When Sports 360,a Sports Bar in New York,saw Yet Another