Question

Study the relation between the first pair and complete the analogy. (a) Luxury electronic watch: Price skimming :: Mass market consumer goods: _______ (b) Goods and Services Tax: Economic environment :: Consumer Protection Act 2019: _______

Hint:

Analogies can help strengthen understanding of concepts by associating them with familiar terms and ideas. Focus on the relationships between the pairs.

Answer 1

(a) Luxury electronic watch: Price skimming :: Mass market consumer goods:
Penetration pricing. Explanation: Price skimming is a pricing strategy where a high price is initially set to target consumers willing to pay a premium for a luxury product. In contrast, mass market consumer goods often use penetration pricing, which involves setting a low initial price to attract a large number of customers quickly.
(b) Goods and Services Tax: Economic environment :: Consumer Protection Act 2019:
Consumer rights and protection. Explanation: The Goods and Services Tax (GST) is a law related to the economic environment as it influences the economy and market pricing. Similarly, the Consumer Protection Act 2019 focuses on consumer rights and protection, addressing issues related to the interests of consumers.