Asked by Juwan Carter on Jul 22, 2024
Verified
Prendez Inc., a car manufacturing company, sells high-end cars worldwide. It sets a high price for its luxury cars and sells to the segment that is willing to pay a premium. Given this information, it can be said that Prendez follows a _____.
A) skimming pricing strategy
B) penetration pricing strategy
C) odd pricing strategy
D) cost-plus pricing strategy
Skimming Pricing Strategy
A pricing strategy involving setting high initial prices for products or services, targeting segments willing to pay more before lowering prices over time.
High-end Cars
Vehicles that are considered to be of the highest quality, often characterized by luxury, superior performance, and high price points.
Luxury Cars
High-end vehicles that offer superior comfort, amenities, performance, and status compared to standard automobiles.
- Investigate the application and ramifications of pricing strategies such as skimming, penetration, and cost-plus in the marketplace.
Verified Answer
JA
Juliana AbdulJul 26, 2024
Final Answer :
A
Explanation :
Prendez Inc. uses a skimming pricing strategy by setting high prices for its luxury cars, targeting customers willing to pay a premium for high-end products. This approach is common for luxury goods where the value is perceived in the exclusivity and quality of the product.
Learning Objectives
- Investigate the application and ramifications of pricing strategies such as skimming, penetration, and cost-plus in the marketplace.