Question

match the pricing strategy with its description.
value - based pricing
distribution pricing
penetration pricing
a strategy that uses lower - than - normal prices initially to draw customers in
a discounted price extended to vendors distributing a companys products
the price a company charges based on the product or services perceived value

Explanation:

• Value - based pricing: This strategy focuses on the perceived value of the product or service to the customer. The price is set according to how much the customer values the offering, rather than just costs or competitors' prices.
• Distribution pricing: It involves giving discounted prices to vendors who are distributing the company's products. This is a way to incentivize the distribution channel.
• Penetration pricing: By using lower - than - normal prices initially, a company aims to attract customers. This can help in quickly gaining market share, especially for new products or when entering a new market.

Answer:

• Value - based pricing: The price a company charges based on the product or service’s perceived value.
• Distribution pricing: A discounted price extended to vendors distributing a company’s products.
• Penetration pricing: A strategy that uses lower - than - normal prices initially to draw customers in.