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State the Penetration pricing
As opposed to the skimming pricing the objective of penetration pricing is to gain a foothold in a highly competitive market. The objective of this pricing method is market share or market penetration. Here the firm prices its product lower than the others do in competition. This method delivers results in the following situation:
When the size of the market is large and it is a growing market.
When customer loyalty is not high customers have been buying the existing brands more because of habit rather than any specific preferences for it.
When the market is characterized by intensive competition,
When the firm uses it as an entry strategy,
Where price quality association is weak.
the break even point in dollorsales for rice company is48,000 and the company's contribution margin ratio is 40 percent. If Rice Company desires a profit of $84,000, how much wou
Constraints 1) A constraint of the type ≤ (≥) can be converted to an equation by adding a slack variable to (subtracting a surplus variable form) the left side of the constrain
How can we draw a break even chart Under this method the variable cost line is drawn first and then fixed cost line is drawn over and parallel to the variable cost line. The fi
tell me how go about charging for your services
THE BREAK EVEN POINT
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Definition of Linear Programming What is Linear Programming
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