A Penetration Pricing Policy Is MOST LIKELY to Be Effective

question 108

Multiple Choice

A penetration pricing policy is MOST LIKELY to be effective when

• A)unit production and marketing costs fall dramatically as production volumes increase.
• B)customers are willing to buy immediately at the high initial price.
• C)lowering the price has only a minor effect on increasing sales volume and reducing unit costs.
• D)the high initial prices do not attract competitors.
• E)customers interpret high price as signifying high quality.

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Definitions:

Rib

One of the long curved bones forming the rib cage, which protects the thoracic cavity and its organs.

Neck

Slightly constricted part of a tooth, between the crown and the root.

Nasolacrimal Canal

A duct that drains tears from the lacrimal sac into the nasal cavity.

Tears

A clear fluid secreted by the lacrimal glands of the eye, serving to lubricate the eye and wash away irritants.