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Dear Sir,
Please help me to explain why the answer is penetrate pricing in the below question in stead of Volume discounting ?This appears on Mock exam of Opentuition :
A company selling soft drink run a promotion campaign, during which the sell product at a large discount. The campaign will last for 2 week.
There are 4 option : Price skimming, Volume discounting ;penetrate pricing ; differential pricing
P/S :
(i) Why cannot I copy question in mock exam in Opentuition in picture format ? If so, it does not take time to typing the question.
(ii) Why 3 question for Section B in Opentuition is not change after each test time ?Thank you.
In future you must ask in the Ask the Tutor Forum if you want me to answer. This forums is for students to help each other.
Penetration pricing is selling at a low price for a limited period in order to persuade customers to buy our product. The intention is always to increase to the ‘normal’ price later in the hope that customers will have liked our product and will continue buying it at the higher price.
Volume discounting is giving a discount on the normal price for customers who buy in large quantities.
I explain all of this in my free lectures. The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
You cannot copy questions in picture format because the software we use does not allow it.
We provide our mock exam as an extra free service. It is only the Section A questions that change.
Appreciate that we are not charging anything for any of our material – there are therefore limits on what we can afford to do.We do state throughout our website that it is vital that you buy a Revision Kit from one of the ACCA approved publishers (BPP and Kaplan) and have arranged a discount for our students on the BPP Revision Kit. Presumably you have bought one and will therefore have plenty of past exam questions (and other exam standard questions) from all sections of the exam to practice.
Thank you Sir, I forgot that I post the question here. I wondered that why I can not find my question in the Ask the Tutor Forum.
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