Which company will likely benefit the greatest by offering social media discounts?
A)A new startup that is using a penetration pricing strategy.
B)Prada that is using a prestige pricing strategy.
C)Apple, who just launched the new iPhone 7.
D)A new startup that provides high-end electronic repair services.

Question

Quizplus · Accepted Answer

Offering social media discounts would likely appeal to price-sensitive customers, so a new startup using a penetration pricing strategy would benefit the most. Prada and Apple typically use prestige pricing strategies, and social media discounts may dilute the perceived value of their luxury products. While a startup providing high-end electronic repair services may benefit from social media marketing, offering discounts specifically may not be the best approach to establishing their brand as high-quality and exclusive.

Which Company Will Likely Benefit the Greatest by Offering Social