Question

Daryl has just patented a new technological medical device designed to help individuals with disabilities navigate their homes safely. Currently, his is one of a very few companies operating in this industry. Which price strategy should Daryl use?

a. both price skimming and penetration pricing
b. status quo pricing
c. penetration pricing
d. price skimming

Answer 1

Daryl should use the penetration pricing strategy for his new technological medical device to attract customers and establish a foothold in the market.

Step-by-step explanation:

The price strategy that Daryl should use for his new technological medical device is penetration pricing. Penetration pricing involves setting a relatively low initial price to attract customers and gain a larger market share. In this case, since Daryl's company is one of the few operating in this industry, using penetration pricing will help him establish a foothold in the market and encourage adoption of his device among individuals with disabilities.

By setting a lower price, Daryl can make his device more accessible and competitive, which is especially important since he is entering an industry with limited competition. This pricing strategy will also allow Daryl to quickly gain market share and potentially deter new entrants into the market. Once his device becomes more established and widely adopted, Daryl can consider adjusting the price strategy accordingly.

Answer 2

The correct answer is the option D: Price skimming.

Step-by-step explanation:

To begin with, the concept known as "Price skimming" in the field of business management and marketing refers particulary to the price strategy that the companies use with the major focus of caputuring the most possible of the economic surplus of the consumer in the early stages of purchase when the product is completely new in the market. Once it has sold out as many as possible regarding the clients that are willing to pay that elevated price, then the organization decrease the price with the focus of engaging other clients as well. So therefore that this is the best strategy that Daryl could use with his product.