In which step of the price setting process would a new product manager be deciding whether to adopt a penetration or a skimming pricing strategy for a new product she is about to introduce to the market?
A)Identify price constraints and objectives.
B)Select an approximate price level.
C)Make special adjustments to the list or quoted price.
D)Estimate demand and revenue.

Question

Quizplus · Accepted Answer

The decision between penetration and skimming pricing strategies would be made in the step where the manager selects an approximate price level for the new product. In the identification of price constraints and objectives step, the manager would determine any pricing limitations or goals. In the special adjustments step, the manager would consider any discounts or promotions. In the demand and revenue estimation step, the manager would analyze the expected sales volume and revenue at different price points. Only in selecting the approximate price level would the manager consider whether to adopt a penetration or a skimming pricing strategy.

In Which Step of the Price Setting Process Would a New