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Clean Cut Mowers has invented and is marketing a silent lawn mower - HSC - SSCE Business Studies - Question 8 - 2003 - Paper 1
Question 8
Clean Cut Mowers has invented and is marketing a silent lawn mower. There is no other mower like it on the market. Vanessa, the Marketing Director, has decided to ch... show full transcript
Worked Solution & Example Answer:Clean Cut Mowers has invented and is marketing a silent lawn mower - HSC - SSCE Business Studies - Question 8 - 2003 - Paper 1
Step 1
What type of pricing strategy is Vanessa using?
Answer
Vanessa is employing the skimming pricing strategy. This approach involves setting a high price at the launch of a new and unique product to maximize revenues from early adopters who are willing to pay a premium for innovation. Since the silent lawn mower is the first of its kind on the market, charging the maximum price aligns with the skimming strategy, taking advantage of its unique selling proposition.