A Penetration Pricing Policy Is MOST LIKELY to Be Effective

question 53

Multiple Choice

A penetration pricing policy is MOST LIKELY to be effective when

• A)lowering the price has only a minor effect on increasing sales volume and reducing unit costs.
• B)the high initial prices do not attract competitors.
• C)a low initial price discourages competitors from entering the market.
• D)customers interpret high price as signifying high quality.
• E)customers are willing to buy immediately at the high initial price.