Which of the Following Is a Reason That a Marketer

question 153

Multiple Choice

Which of the following is a reason that a marketer would choose a penetration pricing strategy?

• A) to ensure the company has the ability to increase prices once demand decreases
• B) to focus on the rapid achievement of profit objectives
• C) to appeal to different consumer segments with different levels of price sensitivity
• D) to create markets for highly technical products
• E) to discourage competition from entering the market

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Definitions:

Capital Equipment

Long-term assets, such as machinery, buildings, or vehicles, that a business uses in the production of goods or services.

Farm Subsidies

Financial assistance provided by government to farmers, intended to stabilize food prices, ensure a stable food supply, and support farmers' incomes.

Value of Production

The total worth of the goods and services produced by a company, industry, or economy.

Tariff

A tax imposed on imported goods and services, which can affect trade balances, prices, and even the economy as a whole.