Lush Cosmetics Corp., a US-based firm, has recently started exporting cosmetics to India. Lush has introduced a new range of mineral-based makeup products for the first time in the Indian market. As Lush has no competitors in this segment of the Indian cosmetics market, it has set a very high price for its products in order to reach the premium, price insensitive segment of the market. This is an example of ___________.
A. penetration pricing policy
B. price skimming
C. cost based pricing policy
D. psychological pricing policy
E. bundling
Answer: B. price skimming
Business
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Governments commonly use activities to support and encourage firms that engage in exporting. Such activities include all of the following except:
A) tax incentives. B) subsidies. C) export assistance. D) free trade zones. E) voting rights.
Business
According to the BCG growth-market share matrix, ________ are strategic business units with products that have a dominant market share in a low-growth potential market
A) dogs B) exclamation points C) cash cows D) stars E) question marks
Business