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Q. Effect on Prices in advertising?
Effect on Prices:- The supporter of advertising quarrel that advertising helps to reduce prices Advertising results in decrease of per unit selling and distribution cost. Therefore for increasing computers market-share and attracting customers advertiser reduction in prices. It is clear from the instance of reduction in prices of competitive products viz mobile phones, television, computers, air-conditioners etc.
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1. Using recent and current examples, explain how a marketer would decide whether a penetration or skimming pricing strategy would be more appropriate for a new product or service.
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