With Regard to Coercive Power,available Evidence Suggests That

question 19

Multiple Choice

With regard to coercive power,available evidence suggests that:

• A) Coercive power should be used to force channel members to stay within designated territories.
• B) Coercive power should be the first type of power used to obtain channel member cooperation.
• C) The use of coercive power is likely to lead to a higher incidence of conflict in the channel.
• D) The use of coercive power is likely to increase the stability and viability of the channel.
• E) Coercive power is often used by smaller companies in the marketing channel.

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Definitions:

Skimming Pricing

A marketing strategy involving setting high prices for a new product during its initial phase to maximize profitability from customers willing to pay more.

Penetration Pricing

A marketing strategy used by companies to attract customers to a new product or service by offering a lower price initially.

Prestige Pricing

A pricing strategy where prices are set higher than normal because the product or service is perceived to have a higher value or status symbol.