When a Company Introduces a Product at a Very High

question 8

Multiple Choice

When a company introduces a product at a very high price and then gradually drops the price over time, it is pursuing a ________ strategy.

• A) market-penetration pricing
• B) market-skimming pricing
• C) value-pricing
• D) switching cost
• E) loss-leader pricing

Grasp the general and specific purposes of business messages.

Learn the appropriate use of direct and indirect approaches in message presentation based on audience receptivity.

Recognize the necessity of planning even for small projects and the importance of preparation in the communication process.

Identify reliable sources of information for crafting business messages.

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Definitions:

Competitor's Pie

A metaphorical representation of the total market share or demand available to all competitors within a market.

Simultaneous Move Game

A type of game theory scenario where all participants choose their actions without knowledge of the others' decisions at the same time.

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged.

High Price

A cost that is considered to be at the upper end of the price range for a product or service.