Strategic Pricing of New Products

question 28

Essay

Strategic pricing of new products
i. Distinguish between skimming pricing and penetration pricing.
ii. Are these two pricing strategies viable alternatives for most products? Explain.

---

Definitions:

Weighted

Weighted refers to giving different elements in a data set or equation varying levels of importance or influence, often according to their relevance or significance.

Binary Relation

A mathematical concept describing a relation between two elements, typically in the context of sets.

Reflexive

pertains to relations where an element is always related to itself, or in social theories, where actions or processes mirror and affect each other within a system.

Transitive

In mathematics and logic, transitive refers to a relation where if relation A exists between B and C, and relation A exists between C and D, then the relation must also exist between B and D.