Explain the Difference Between Price Skimming and Penetration Pricing

question 107

Essay

Explain the difference between price skimming and penetration pricing.Identify marketing strategies associated with each and types of products that are most likely to fall within each strategy.

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Definitions:

Geodemographic Segmentation

The process of dividing a market into smaller groups based on geographic location and demographic characteristics for targeted marketing strategies.

Psychographic Segmentation

The division of a market into different segments based on consumers' personality traits, values, attitudes, interests, and lifestyles.

Benefit Segmentation

A strategy in marketing that categorizes a market into various segments, focusing on the distinct advantages customers look for in a product.

Psychographic Segmentation

The process of dividing a market into segments based on consumer psychology, including personality traits, values, attitudes, interests, and lifestyles.