Asked by
Peter Fridge
on Dec 15, 2024
Verified
Xunrui Communications is an upstart maker of inexpensive smartphones for the Chinese market. Xunrui purchases the components and assembles the phones in Shenzhen, located in southern China. These smartphones retail for about $65, significantly less than the $250 to $800 for smartphones marketed by Apple or Samsung, the top providers. Xunrui Communications most likely is using which pricing strategy in this example?
A) penetration pricing
B) cost-plus pricing
C) target ROI pricing
D) above-market pricing
E) skimming pricing
Penetration Pricing
A pricing strategy where a product is set at a low initial price to rapidly gain market share by attracting a large number of buyers.
- Comprehend the strategic rationales for assorted pricing policies, like skimming and penetration pricing, during the product life cycle stages.
Verified Answer
DK
Learning Objectives
- Comprehend the strategic rationales for assorted pricing policies, like skimming and penetration pricing, during the product life cycle stages.
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