Question

Describe the three objectives that guide pricing strategies. Which of these objectives is associated with a (1) skimming pricing policy and (2) penetration policy

Answer 1

Answer:

The answer is below

Explanation:

The three objectives that guide pricing strategies for business owners are:

1. Ensuring the product is accepted

2. maintaining market share as the competition grows

3. Reaping profits.

Among these three objectives, the one that is associated with a

1. slSkimming pricing policy is "Reaping Profits." This is because skimming pricing policy is means of charging higher prices on the commodities at an early stage, and then reduce the prices later in the production life.

2) Penetration policy is "Ensuring the product is accepted." This is because Penetration policy is a means of charging lower prices on the commodities at the early stage of production, and then increase the prices later in the production life.