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Author Question: Explain the difference between skim pricing and prestige pricing and explain why these types of ... (Read 107 times)

acc299

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on: Jun 29, 2018
Explain the difference between skim pricing and prestige pricing and explain why these types of strategies are used.

Question 2

What are exchange controls? Why are they used and what are the consequences of using them?


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mfedorka

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Skim pricing is typically a temporary strategy where a company sets a price at a high level for a short time. New, innovative products entering a marketplace often employ this type of strategy because some buyers are willing to pay a high price to have the newest products. By contrast, with prestige pricing a company sets a high price throughout the life of a product. The high price is designed to signify quality.

Answer to Question 2

Exchange controls limit the amount of a currency that can be exported or exchanged with other countries. These controls allow a country to maintain greater control over its exchange rate. International businesses may find that it is hard to send profits back to a home country from a country with exchange controls. Such businesses may need to purchase export products and then resell those products to move profits out of a country.


acc299

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

bulacsom

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Reply 3 on: Yesterday
Wow, this really help

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