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From a competitive standpoint, Winn-Dixie must consider the implications of its pricing on the pricing decisions of its competitors. Winn-Dixie should use the penetration pricing strategy. With this strategy, the company offers new products at low prices in the hope of achieving a large sales volume...
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Penetration pricing requires more extensive planning because the company must gear up for mass production and marketing. Penetration pricing has two advantages. First, the low initial price may induce consumers to switch brands or companies. Second, penetration pricing may discourage competitors from entering the market...
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