Question

Ibuddy CEO Dave Taylor thinks that price skimming would be the best pricing strategy when launching the product. The marketing manager disagrees and thinks they should use penetration pricing. Evaluate the decision above and recommend the best strategy.

Answer 1

Answer: skimming price once product is out.

product is lets say a phone called the Ibuddy X pro series.

as its a phone the price will be high so with time e.g years the price lower to a suitable price e.g starting price £250 over the course of 5 year drops to £146. therefor the best statagy is skimming the price.

hope this is very helpful