Question

50) In pricing her line of Smart Phone Cases, Lucie Loo remembers hearing that she needs to consider three decisions with respect to pricing her product line. She seems to remember that one decision is to identify the lowest-priced product and set the price to drive traffic. Another decision she needs to make is to identify the highest priced product and position it as her premium offering. What is the third decision Lucie needs to make

Answer 1

Answer: setting a price on her market competitors or dominant inputs so she can track market changes.

Explanation: according to the three(3) pricing strategies which are

1. Penetrate

2. Skim

3. Follow

Penetrating: she has indentified her lowest price products as this would help her draw in more customers.

Skim: she has also indentified her highest priced product and set it as premium

Follow she needs to set or base her price on what her competitors offer and follow the market for changes