Matias is developing a pricing strategy for his start-up company. Market research tells him that there is no elite segment and

Question

3 years ago

9

Matias is developing a pricing strategy for his start-up company. Market research tells him that there is no elite segment and

the product that he sells offers little opportunity for differentiation. His marketing plan includes investments in advertising and promotion. Which pricing strategy is best suited for Matias's company?

Business

1 answer:

kipiarov [429] · Answer 1 · 2022-01-22T04:15:02+03:00

Answer:

Penetration Pricing Strategy

Explanation:

The reason is that the penetration strategy is used when the product that the company wants to offer to its customers has very little or no differentiation, which is the case here. It is also helpful in promoting the product as the product is sold at lower prices helps to attract potential customers to buy the product. So setting a penetration price is itself a promotion strategy as well.

Matias is developing a pricing strategy for his​ start-up company. Market research tells him that there is no elite segment and

Matias is developing a pricing strategy for his start-up company. Market research tells him that there is no elite segment and