Pricing Objectives
Increase market share– Companies set low prices to achieve
high unit sales in order to gain a company's portion of sales within
the entire market (market share).
Discourage new entrant into industry – company usually adjusts
the price down to drive competitors away.
Market skimming objective – To reach this objective, firm must
set high prices initially to target who are willing to pay the high
price, and lowering the price to attract the more price sensitive
customers.