Match the column

Match the List-I with List-II:

List-I (Pricing Strategies):	List-II (Their Explanation):
. Skimming Price Policy	I. Where the nature of the products are non-storable
B. Penetration Price Policy	II. Where close substitutes of a new product are not available
C. Peak Load Pricing Policy	III. Exporting goods at a price lower than the domestic price
D. Dumping Pricing Policy	IV. Substitutes of new products are available

Codes:

Correct option is D

1. A. Skimming Price Policy → II (Where close substitutes of a new product are not available): This strategy involves charging a high price initially to maximize profits before competitors enter the market.
2. B. Penetration Price Policy → IV (Substitutes of new products are available): This strategy sets a low price to gain market share quickly when substitutes are readily available.
3. C. Peak Load Pricing Policy → I (Where the nature of the products are non-storable): Prices are higher during peak demand periods due to limited storage capabilities.
4. D. Dumping Pricing Policy → III (Exporting goods at a price lower than the domestic price): This involves selling goods in a foreign market at a lower price to outcompete local businesses.
Information Booster
1. Skimming Price Policy: Often used for innovative products to recover R&D costs before competition intensifies.
2. Penetration Price Policy: Ideal for capturing market share in competitive markets with existing substitutes.
3. Peak Load Pricing: Common in utilities and services, e.g., electricity pricing during high-demand hours.
4. Dumping Pricing Policy: A controversial strategy that may lead to anti-dumping investigations in international trade.
Additional Knowledge
· Examples of Skimming: Apple products like iPhones are initially priced high.
· Examples of Penetration: Netflix initially offered low subscription rates to attract users.
· Examples of Peak Load Pricing: Surge pricing in rideshare services like Uber.
· Examples of Dumping: Exporting steel at lower prices to foreign markets.