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Question
What pricing strategy will be used to launch a high-end smartphone?
Solution
High-End Smart Phone: Cost plus pricing strategy.
For a high-end smartphone, a cost-plus pricing strategy is commonly used. This approach is based on the principle that the selling price of a product should cover its total cost and provide a reasonable profit margin. The margin can be either a fixed amount per unit or a percentage of the cost. This margin is referred to as a "mark-up," hence the term "mark-up pricing."
RELATED QUESTIONS
State any two advantages of cost-plus pricing strategy.
It is also known as 'going rate pricing' or competition based pricing.
Markup pricing is also called as ______.
Setting a price below than that of the competition is called ______.
______ determines the sales volume and the profit margins.
What is parity pricing?
Mention the advantages of cost plus pricing.
What are the conditions under which parity pricing is desirable?
Discuss the pros of Penetrating Pricing Policy.
"Penetrating pricing leads to setting a high initial price". Comment
