Business Studies

Marketing

Easy

A company called "EcoTech Appliances" has recently launched a new line of eco-friendly home appliances designed to help consumers save energy and reduce their carbon footprint.

Marketing Strategies used by the Company:

The company has developed eco-friendly appliances with energy-efficient features and environmentally sustainable materials. The product is priced slightly higher than regular appliances but is positioned as a long-term investment in sustainability.
Eco Tech has adopted a premium skimming pricing strategy for eco-friendly appliances, positioning them as high-quality, sustainable products.
The products are available on both online and offline channels, including large retail stores and the company's e-commerce website.
EcoTech employs various promotional tools to create awareness and persuade customers to buy their products:

-The company runs TV and digital ads showcasing the energy-saving benefits of their appliances and their commitment to sustainability.

-Sales representatives are trained to interact with customers in retail stores, explaining the benefits of the products and offering personalized recommendations based on individual needs.

-Eco Tech has garnered attention from environmental organizations and media outlets due to their focus on eco-friendly products, resulting in positive press coverage and word-of-mouth promotion.

Which pricing strategy is used by EcoTech Appliances for its products?

Competitive pricing

Penetration pricing

Skimming pricing

Cost-based pricing

✅ Correct Option: 3

Option 1 -> Competitive pricing: Setting prices based on competitors' prices in the market to remain competitive and attract price-sensitive customers.

Option 2 -> Penetration pricing: Setting initially low prices to quickly gain market share and attract a large customer base, then gradually increasing prices.

Option 3 -> Skimming pricing: Setting high initial prices for innovative or premium products to maximize profits from early adopters, then lowering prices over time.

Option 4 -> Cost-based pricing: Setting prices by adding a markup to the total cost of producing the product, ensuring coverage of costs plus desired profit margin.

Hence, Option 3: Skimming pricing -> EcoTech Appliances uses skimming pricing strategy because it positions itself as an innovative, eco-friendly appliance brand. This strategy allows them to target early adopters and environmentally conscious consumers willing to pay premium prices for cutting-edge, sustainable technology, maximizing initial profits before competitors enter the market. -> correct

Question 46

What is the main advantage of using personal selling in EcoTech's promotional strategy?

Question 48

"Eco Tech has garnered attention from environmental organizations and media outlets due to their focus on eco-friendly products, resulting in positive press coverage and word-of-mouth promotion". Which element of promotion mix is highlighted here?

Question 49

Which promotion tool is EcoTech using to offer personalized recommendations to customers?

Question 50

"The company has developed eco-friendly appliances with energy-efficient features and environmentally sustainable materials". Which element of the marketing mix is highlighted here?

Which pricing strategy is used by EcoTech Appliances for its products?

Solution

More from this set:

Keyboard Shortcuts

CUET Business Studies Past Year Questions (Topic-Wise)