BUS 330-Week 3 Discussion 1-8

Hi Everyone A brief description of the three pricing strategies (from least to most expensive).

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In this week’s lesson, we learned about the three pricing strategies neutral, penetration, and skim. These strategies reflect the signal positioning of their products, by selecting a high, average or low price point compared to their fellow competitors. For this I use the medium sized regular pizza as a base line, as to keep results equal.

Penetration Pricing– This is when organizations reduce their prices lower that there competitors, as to achieved more sales and attract more customers. According to White, S (2019) “Opting for a penetration price works best when the seller intends to maintain consistency of pricing, forgoing use of sales events or other discounts that would lower revenue even further” (section 5.3). In my research of comparing all the pizza shops, I found that Little Caesars use this strategy. Their medium pepperoni pizza was $5.99 each. This will grab the attention of new and already loyal customers to purchase their product in order to save money.

Neutral PricingThe next strategy neutral prices, which is the more common

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