Businesses use high price strategies and low price strategies as part of their marketing mix - Leaving Cert Business - Question 2 - 2019
Question 2
Businesses use high price strategies and low price strategies as part of their marketing mix.
Identify the product (A or B) where the business is using:
(i) Premiu... show full transcript
Worked Solution & Example Answer:Businesses use high price strategies and low price strategies as part of their marketing mix - Leaving Cert Business - Question 2 - 2019
Step 1
(i) Premium Pricing:
96%
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Answer
Premium pricing is a strategy where products are priced higher than the competition to create a perception of quality and exclusivity. In this case, the product using a premium pricing strategy is Product B (Samsung Galaxy Note 9), which is priced at €839.99.
Step 2
(ii) Penetration Pricing:
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Answer
Penetration pricing is a strategy used to attract customers by setting a low price for a new product. The product using penetration pricing is Product A (Alcatel 1), priced at €59.99. This lower price aims to gain market share quickly.
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