Company A uses a pricing approach where the initial price for a product is set high and then lowered, and Company B uses an approach where initial prices are set low in an effort to gain market share.  What terms best describe these practices?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 5DRQ
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Company A uses a pricing approach where the initial price for a product is set high and then lowered, and Company B uses an approach where initial prices are set low in an effort to gain market share.  What terms best describe these practices?
 
 
• Company A – Predatory; Company B – Skimming
• Company A – Penetration; Company B – Predatory
• Company A – Skimming; Company B – Penetration
• Company A – Skimming; Company B – Predatory
• Company A – Predatory; Company B – Penetration
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ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing