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Preparation Slot 12
Preparation Slot 12
Preparation Slot 12
1. Dương Tịnh Y
2. Nguyễn Hoàng Bảo Ngọc
3. Nguyễn Thanh Mai
4. Trương Phụng Nghi
5. Nguyễn Thị Minh Hiền
6. Lê Thanh Thiên
Market-skimming pricing:
Setting a high price for a new product to skim maximum revenues layer by layer
from the segments willing to pay the high price; the company makes fewer but
more profitable sales.
Market skimming makes sense only under certain conditions. First, the product’s
quality and image must support its higher price, and enough buyers must want
the product at that price. Second, the costs of producing a smaller volume cannot
be so high that they cancel the advantage of charging more. Finally, competitors
should not be able to enter the market easily and undercut the high price.
Market-penetration pricing:
Setting a low price for a new product in order to attract a large number of buyers
and a large market share.
Several conditions must be met for this low-price strategy to work. First, the
market must be highly price sensitive so that a low price produces more market
growth. Second, production and distribution costs must decrease as sales volume
increases. Finally, the low price must help keep out the competition, and the
penetration pricer must maintain its
low-price position. Otherwise, the price advantage may be only temporary.
Thien
customer value perceptions:
If consumers perceive less value relative to competing products, the company must either
charge a lower price or change customer perceptions to justify a higher price.
Market Competition :
In highly competitive markets, companies may engage in price wars to gain a competitive
edge. Price cuts can attract price-sensitive customers and help the company maintain or
increase its market share.
External Factors:
If a company relies on imported goods or materials affected by currency fluctuations or
changes in commodity prices, they may adjust their prices accordingly to maintain profit
margins.
Repositioning in the market:
Companies may use price cuts as part of a broader strategy to reposition their brand or
product in the market, targeting a different customer segment or changing their perceived
value proposition
NGHI
Competitive Pressure:
- To be competitive and hold market share, businesses may need to match competitors
that cut their prices or provide discounts. If you don't, you risk losing business to rivals
who provide better prices.