Problem 1: Penetration pricing is involved when a company launches a product in a market where the product is low priced while the company has the intention to secure market share. This project requires extensive planning. For proper execution of the pricing system, the company or manufacturer must be ready and willing to produce the specific product in large quantities. The company or manufacturer should also launch a major campaign that will mainly publicize the low prices of the new products. The business owner must understand that penetration pricing does not result in an expensive operation and he must be prepared to bear the cost. With low consumer demand, the company may suffer from an accumulated inventory of products without a market and therefore becoming unwanted. Price skimming is a strategy that primarily focuses on increasing and maximizing profits by charging high prices to early customers of the new product. Prices decrease over time to attract the most thrifty consumers. The reduction is mainly carried out after a significant amount of sales has been made. When ...