One other example of penetration pricing that I can think of is companies that p

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One other example of penetration pricing that I can think of is companies that provide internet services or wireless phone services. They always start with a low price initially and try to capture a large share of the market. So Starbucks is using "premium pricing"...right? Just like Bloomingdale's, Lord & Taylor, etc.? This is when a business tries to sell its products consistently at a higher price (premium) with the use of effective marketing techniques. Would Walmart's pricing be an example of "economy pricing?"

Explanation / Answer

One other example of penetration pricing that I can think of is companies that provide internet services or wireless phone services. They always start with a low price initially and try to capture a large share of the market. So Starbucks is using "premium pricing"...right? Just like Bloomingdale's, Lord & Taylor, etc.? This is when a business tries to sell its products consistently at a higher price (premium) with the use of effective marketing techniques. Would Walmart's pricing be an example of "economy pricing?"

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