You are a business adviser for Alba and Gavigan. Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a

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  • You are a business adviser for Alba and Gavigan. Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a
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Problem Solution First

a) You are a business adviser for Alba and Gavigan. Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a penetration price, with supportive reasoning for and against each pricing alternative.

As we know, penetration pricing useful for low-estimated items where its objective to secure the piece of pie whereas skimming pricing method useful for high-estimated have exact inverse of penetration pricing system. With the consideration of this case of 'Honest Company', where Company's owner want to get high profit business from selected domestic markets where they already have selected targeted customers. Therefore, I would suggest them to maintain the quality of products and services, if they will be able to...

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