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2 marksPricing Decision

CAPE Management of Business Unit 2 · 2006 · Paper 1 · Question 7(a)

A manufacturer plans to launch a new brand of detergent using 'price skimming' rather than penetration pricing.

Explain what is meant by price skimming.

The mark scheme is shown once you've answered.

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  1. 7(b)Explain what is meant by penetration pricing.[2 marks]

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