Egyptian Art

Penetration pricing is implemented when the objective is to increase trade share and sales volume rather than to maximize cyberspace Penetration pricing is appropriate in the fol griming conditionsPrice snap beanPrice flexileity of a harvest-home is the responsive of consumers to changes in harm . senior high flexible band increases would mean that the change in quantity demanded of a product would be great than the change in hurt . This marrow that a slight change in outlay would aftermath in consumers to switch from the current brand to the low fiscal valued , new product . The viscoelasticity of the product depends on the disposition of the productPenetration strategy would be successful if the product is highly elastic that isSubstitutes : the greater the number of substitutes the greater the elasticity and grea ter the chances of consumers switch to low priced productPercentage of income : the higher(prenominal) the percentage of income spent on the product , the higher the elasticity as the consumers would be truly(prenominal) heedful in buying expensive products . They would thoroughly oppose the prices and whence make the buying decision .

Therefore higher the price of the product , the more chances there are of qualification keenness pricing successfulLuxurious : necessary products are less elastic as the consumers would buy the product irrespective of the price . On the separate hand , luxurious products are h ighly elastic . This implies that for perce! ptivity pricing to be appropriate the product should be a luxury product so that the consumers are pure to price changesEconomies of scaleAs explained earlier , penetration pricing means that the initial , admission pricing are kept low . The phylogeny of all product is very expensive and this stage is very significant in the product life cycle . indeed it is exceedingly important that there are economies of scale in outturn and other processes so that penetration...If you want to get a enough essay, order it on our website: OrderCustomPaper.com

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