Question

match the pncing strategy with the corresponding description. value - based distribution penetration competitive cost - plus a percentage discount extended to vendors. a strategy that offers lower prices to new customers during a special pricing period. prices similar to competitors with a small variation. charging for the believed worth of a product or service. a price determined by taking the cost of a product and adding a profit margin. cost - plus penetration competitive value - based distribution

Explanation:

• Distribution: Distribution pricing often involves discounts to vendors as part of the distribution - related cost - sharing or incentive structure.
• Penetration: Penetration pricing is a strategy where lower prices are offered to new customers (usually in a new market or for a new product) during a special period (like a launch period) to gain market share.
• Competitive: Competitive pricing means setting prices that are in line with competitors, with only a small variation (either slightly higher or lower) based on factors like product differentiation.
• Value - based: Value - based pricing is about charging a price that reflects the perceived or believed worth of a product or service to the customer, rather than just cost or competitor prices.
• Cost - plus: Cost - plus pricing is calculated by taking the cost of producing a product (or providing a service) and adding a pre - determined profit margin.

Answer:

• "A percentage discount extended to vendors" → Distribution
• "A strategy that offers lower prices to new customers during a special pricing period" → Penetration
• "Prices similar to competitors with a small variation" → Competitive
• "Charging for the believed worth of a product or service" → Value - based
• "A price determined by taking the cost of a product and adding a profit margin" → Cost - plus