Lang Industries is presenting a new product and will use price skimming to set the price. Price skimming is developing an originally high price to cover new.
<h3>What industries use price skimming?</h3>
Price skimming samples are mostly seen among tech giants, like Apple, Sony, and other businesses that develop new technologies that they know are high in the order.
Skim pricing, also understood as price skimming is a pricing strategy that sets new product expenses high and subsequently lowers them as competitors enter the market. Skim pricing is contrary to penetration pricing, which prices newly established products low to build a big customer base at the outset.
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Answer:
Option C Depreciate; long
Explanation:
The reason is that the imports of the items starts increasing and as a result the supply of the currency starts increasing which means the demand of the foreign currency increases and as a result the domestic currency weakens in the longer term.
Answer:
The sales volume would be required to break even is $22,285
Explanation:
In order to calculate the sales volume would be required to break even we would have to calculate the following:
Breakeven sales = Fixed cost/contribution per unit
fixed costs are estimated at $1,170,000
contribution per unit=selling price per unit - variable cost per unit
selling price per unit=1.70*$75
selling price per unit=$127.50
Hence, contribution per unit=$127.50-$75
contribution per unit=$52.50
Therefore, Breakeven sales =$1,170,000/$52.50
Breakeven sales =$22,285
Answer:
Development - Penetration Pricing/Price Skimming
Growth - Competitive Pricing/Value-based Pricing
Maturity - Competitive Pricing
Decline - Bundle Pricing
Explanation:
The pricing strategy that would be most effective considering both the market's needs and the product life cycle are as follows:
1. Development: If and when the product is in this stage which is the first stage of the product life cycle, there is need to penetrate the market because it is a new product, hence the need for the 'penetration pricing strategy'. Howbeit, if the company is a monopoly and there is available demand it should rather charge a high price (price skimming) until competition sets in and price is reduced to compete with the entrants.
2. Growth: At the growth phase of the product life cycle, customers have known the product and it would be wise to charge a price that suits the value perceived by customers, hence the need for 'value-based pricing'. On the other hand competitive pricing helps to match pricing with the price of substitute goods in the market.
3. Maturity: At this phase of the product life cycle sales is beginning to level-out and competition would have become intense, hence the need to stick with the 'competition pricing strategy'
4. Decline: At this stage the product is almost being phased out and outdated and the best pricing strategy is 'bundle-pricing' where the declining product is attached with trending products and sold together. For example cameras are on the decline but mobile phones are trending. A company can choose to tie both products together and sell as one.
Answer:
common usage
Explanation:
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