Chapter 8

Question 1

Skimming-strategy

Answer 1

Advantgaes

• Possible skimming of higher WTP for innovations
• High unit contribution margins

Disadvantage

• High profits attract competitors
• Possible adaption problems

Prerequisites

• High quality/positive image of product
• HIgh wtp of a sufficient number of customers
• Production should not be easy to imitate

Question 2

penetration strategiy

Answer 2

Advantages

• opportunity of high sales volume growth
• cost structure advantage due to experience effects
• complication of market entry for competition

Disadvantgaes

• longer payback period of product
• price increases may lead to decreases in sales volume

prerequisites

• high price sensitivity
• sufficient funds/ high capital demand