Price mix - SS2 Commerce Past Questions and Answers - page 1

To gain a large customer base

Setting a high initial price for exclusivity

Pricing tactics

Maximizing profitMinimizing market shareability

Setting prices based on perceived customer value

Penetration pricing involves setting a low initial price to gain a large customer base, while skimming pricing involves setting a high initial price for exclusivity and targeting early adopters or customers who are willing to pay a premium.

Businesses should consider factors such as market conditions, customer preferences, competitive landscape, production costs, and desired profit margins when determining their price mix. By considering these factors, businesses can align their pricing decisions with their business goals and market dynamics.