Market pricing sets prices according to consumer demand and willingness to pay, ensuring competitiveness. Skimming sets high prices at launch to maximise early profit, penetration uses low prices to enter markets, and premium pricing positions products as luxury with high margins. Market pricing balances supplier costs with customer value perception, making it a common approach in competitive industries.
[Reference: CIPS L4M5 (2nd ed.), LO 1.2 – Pricing strategies in negotiation contexts., , , ]
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