Answer :
Final answer:
Mupa Footwear is using a premium pricing strategy by pricing their shoes lower than Keni Footwear's similar offering. This tactic aims to attract price-sensitive customers while maintaining a perception of quality. Overall, Mupa's pricing approach enhances its competitiveness in the market.
Explanation:
Understanding Mupa Footwear's Pricing Strategy
Mupa Footwear introduced a similar model of shoes at a lower price point compared to Keni Footwear's premium offering. This type of pricing is commonly referred to as premium pricing, where a company sets a price lower than a more established competitor to attract price-sensitive customers.
1. Premium Pricing: Mupa Footwear's action can be classified as a strategy to capture market share by offering a similar product at a lower price. This tactic appeals to consumers who see value in price differences. For instance, if Keni Footwear's shoes are priced at [tex]$500, Mupa’s lower price of $[/tex]490 could lure customers seeking a bargain.
2. Similar Product Positioning: The pricing strategy reflects competitive positioning, allowing Mupa Footwear to position their shoes as a cost-effective alternative to Keni's premium shoes without diminishing quality perception.
3. Attracting Price-Sensitive Customers: By setting their prices slightly lower, Mupa may also attract budget-conscious consumers who might otherwise opt for a cheaper brand.
Learn more about Pricing Strategy here:
https://brainly.com/question/32117275