Question

Robin must decide on her overall pricing approach. She is a premium provider of food, but operates in an extremely competitive environment, with many lower-priced alternatives. She knows it's important to establish a foothold in the market, then perhaps she can adjust pricing later to increase margins. Which approach should she choose?a. Prestige objective, skimming strategy, psychological tacticb. sales objectives, competitive strategy, and promotional tactic

Answer 1

Answer: B

Sales objectives, competitive strategy, and promotional tactic

Explanation:

Sales objectives provides a clear direction for the expected a turnover a firm hopes to achieve over a period of time.

Competitive strategy refers to various strategies Robin hopes to utilize in getting a share from the market share. While promotional tactics refers to the various campaign and publicity aimed at introducing a product to the public.

Robin will hope to utilize this three concepts in order to successfully penetrate a highly competitive food market while also maintaining a certain market share.

Answer 2

Answer:

The correct option is B,Sales objectives, competitive strategy, and promotional tactic

Explanation:

Option A is not correct as price skimming involves selling at different prices in different prices by leveraging on lack of information in all available markets,which is not possible in this instance as there no alternative markets.

However, the fact that the market is keenly contested implies that Robin would have adopt a tactical  promotional and competitive strategies capable by a way of lowering price pending the time that the consumers recognize the premium nature of the product  when price increases would be justified.