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Pass 202 Exam Cram

Exam Code: 202

Exam Name: Pre-Sales Fundamentals

Version: V15.35

Q & A: 208 Questions and Answers

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A manufacturing company has just developed a new product and must now determine the most appropriate pricing strategy for its initial launch.
The product will initially be unique because it will include highly desirable features that no competitive product offers. Its development has involved substantial expenditure and the company wishes to recover this as soon as possible.
The product's uniqueness is expected to last for only six months before a competitor launches a similar product. It is expected that the competitor will avoid any significant development costs by reverse engineering the company's own product.
At that point, to remain competitive, the company must ensure that its selling price matches that of the competitor.
Which of the following pricing strategies would be most suitable for the initial launch of the company's product?
A. Market skimming
B. Dual pricing
C. Own label pricing
D. Penetration pricing
Answer: A

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