Differential or new-product pricing used as the pricing strategy.

    Read the following examples. Determine the type of differential or new-product pricing used as the pricing strategy. Every year Dillard’s offers a Fourth of July sale on its products. Coca-Cola quickly gained market share in a new market by pricing products lower than competitors. At car dealerships it is common to haggle over the final price of a car purchase. A U.S. textbook publisher sells textbooks in the United States at one price, but will sell foreign editions at a lower price for students in other countries. Tiffany & Co. introduced a new emerald necklace by charging the highest possible price to reflect its prestige.