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Price, the Only Revenue Generator

Pricing Strategies

REVIEW QUESTIONS

  1. Explain the difference between a penetration and a skimming pricing strategy.
  2. Describe how both buyers and sellers use sealed bid pricing.
  3. Identify an example of each of the following: odd-even pricing, prestige pricing, price bundling, and captive pricing.
  4. What is the difference between FOB origin and FOB destination when paying for shipping charges?
  5. Explain how trade allowances work.