penetration pricing การใช้
- Penetration pricing strategy is usually used by firms or businesses who are just entering the market.
- Its penetration pricing made it an affordable alternative to its rivals, particularly in the more price-sensitive rural areas.
- They find that, despite numerous recommendations in the literature for skimming or penetration pricing, market pricing dominates in practice.
- This strategy of penetration pricing is vital and highly recommended to be applied over multiple situations that the firm may face.
- In most countries, predatory pricing is illegal, but it can be difficult to differentiate illegal predatory pricing from legal penetration pricing.
- Because of the dominant role of pricing, market tactics like penetration pricing have evolved to offer a convincing incentive for switching.
- Penetration pricing launches the new product 18 % below the market price and subsequently lowers the price relative to the market price.
- Penetration pricing launches the new product 18 % below the market price and subsequently increases the price relative to the market price.
- The main disadvantage with penetration pricing is that it establishes long-term price expectations for the product, and image preconceptions for the brand and company.
- This strategy can sometimes discourage new competitors from entering a market position if they incorrectly observe the penetration price as a long range price.
- For the last few years, Internet retailers have engaged in " penetration pricing, " setting low prices to make a big splash in new markets.
- Some commentators claim that penetration pricing attracts only the switchers ( bargain hunters ) and that they will switch away as soon as the price rises.
- Penetration pricing benefits from the influence of word-of-mouth advertising, allowing customers to spread the words of how affordable the products are prior to business increasing the prices.
- Prices will not be as low as they were in the heady days of penetration pricing, but they will have to be attractive enough to compete with alternative retail channels.
- Taken to the extreme, penetration pricing is known as predatory pricing, when a firm initially sells a product or service at unsustainably low prices to eliminate competition and establish a monopoly.
- A firm that uses a penetration pricing strategy prices a product or a service at a smaller amount than its usual, long range market price in order to increase more rapid market recognition or to increase their existing market share.