A firms base pricing strategy establishes the initial price and sets the range of possible price movements throughout the products life cycle. The initial price is critical, not only for initial success but also for maintaining the potential for profit over the long term. Define and explain with an example the following different approaches to base pricing: Price skimming Price penetration Freemium pricing Prestige pricing Value-based pricing Competitive matching.

1. A firms base pricing strategy establishes the initial price and sets the range of possible price
movements throughout the products life cycle. The initial price is critical, not only for initial success
but also for maintaining the potential for profit over the long term. Define and explain with an
example the following different approaches to base pricing: Price skimming Price penetration
Freemium pricing Prestige pricing Value-based pricing Competitive matching