Match List I with List II:
| List I (Pricing Strategies) | List II (Description) | ||
| (A) | Ramsay pricing | (I) | Setting a high price when a product is first introduced and gradually lowering price as it gains scale |
| (B) | Price skimming | (II) | Firm charges lower price (than the ongoing price) to gain market entry |
| (C) | Cost plus pricing | (III) | Price deviations from marginal cost should be inversely proportional to price elasticity of the product |
| (D) | Penetration pricing | (IV) | It is full cost pricing strategy that also includes mark up for target return, degree of competition, price elasticity and availability of substitutes. |
Choose the correct answer from the options given below:
1
(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
2
(A) - (II), (B) - (I), (C) - (III), (D) - (IV)
3
(A) - (III), (B) - (I), (C) - (IV), (D) - (II)
4
(A) - (I), (B) - (IV), (C) - (II), (D) - (III)