Answer – Pricing Strategies

Pricing Strategies

Here is the ‘Pricing Strategies Matrix’ with the answers overlaid. Here are the more detailed explanations.

  • Burger King introduces a new range of value meals. There is a lot of price competition in the fast food market, hence the value approach.
  • Nokia launch a new videophone. This is a new, innovative product that can claim a higher price. Skimming is only an option in the short-term since competition will be inevitable.
  • Wall-Mart launch a new range of own-label soups. This is an economy brand.
  • Cunard launch two new cruise ships. The service is high price and high quality with a premium price.


  • A cable TV provider moves into a new area and needs to achieve a market share. The company uses a penetration approach to gain market share. Prices could be increased at a later date.
  • Holiday Inns try to fill hotels during winter weekends. This is an example of ‘off peak’ pricing.

Published by

Tim Friesner

Marketing Teacher designs and delivers online marketing courses, training and resources for marketing learners, teachers and professionals.