This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What are market skimming and market penetration? What will be an ideal ... (Read 38 times)

tiara099

  • Hero Member
  • *****
  • Posts: 588
on: Aug 10, 2018
What are market skimming and market penetration?
 
  What will be an ideal response?

Question 2

Why was the Industrial Revolution important to the development of modern restaurants?
 
  a. Decrease in disposable income and population shift toward farms
  b. Increase in disposable income and population shift toward cities
  c. Invention of the automatic deep fryer
  d. Invention of the milkshake machine
  e. Use of steam for cooking


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

pocatato

  • Sr. Member
  • ****
  • Posts: 333
Reply #1 on: Aug 10, 2018
Answer to Question 1

Market skimmingin the market skimming approach, pricing operators use a relatively high price to attract or skim a small segment of the market. This philosophy works best when there is a small percentage of a large potential market that can and will pay the higher prices; where the competition is unlikely to undercut the prices set for similar product offerings; and where customers perceive that the value given in the form of the restaurant experience is greater than the prices charged. Market penetrationon the other hand, market penetration involves setting prices as low as possible while still contributing to profits. This approach sets out to attract as large a market as possible. Ideally, lower prices will create a loyal following, which will translate into greater sales volume and long-term profitability. This philosophy works best when demand is price elastic; that is, when changes in price result in a greater change in demand, and when lower prices will deter competition from invading the market.

Answer to Question 2

B


tiara099

  • Hero Member
  • *****
  • Posts: 588
Reply #2 on: Aug 10, 2018
Both answers were spot on, thank you once again


pocatato

  • Sr. Member
  • ****
  • Posts: 333
Reply #3 on: Aug 10, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

A slave market in Marrakesh, Morocco. This lithograph is from the 1800s. A slave market in Marrakesh, Morocco. This lithograph is from the 1800s.
Reconstruction Drawing of Trajan's Market Reconstruction Drawing of Trajan's Market
Main Hall, Trajan's Market Main Hall, Trajan's Market
Stock Market Question Stock Market Question
Stock Market Tracks Growth in GDP Stock Market Tracks Growth in GDP
Under ideal conditions, a single cell of the bacterium E. coli would divide every 20 minutes to ... Under ideal conditions, a single cell of the bacterium E. coli would divide every 20 minutes to ...
Video: Mechanics of Sound Animation

For a complete list of videos, visit our video library