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Pricing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Pricing

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • June 5, 2021 at 3:29 pm #623296
    maco686
    • Topics: 1
    • Replies: 0
    • ☆

    Good day
    I was wondering why is it that for a penetration pricing policy to be effective a highly elastic PED is required?

    June 5, 2021 at 4:52 pm #623315
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49602
    • ☆☆☆☆☆

    Penetration pricing is a sensible policy to consider provided charging a low price for a period will result in increased sales. For a low price to result in higher sales need the PED to be elastic.

    Have you watched my free lectures on pricing and pricing policies?

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