Which of the Following Is True of Penetration Pricing

question 32

Multiple Choice

Which of the following is true of penetration pricing?

• A)Penetration pricing is a variation of a premium pricing strategy.
• B)Penetration pricing is a mass-market strategy rather than a niche strategy.
• C)Penetration pricing is best used when there are no competitors in the market and entry is difficult.
• D)Penetration pricing is used in a market where product differentiation is high.
• E)Penetration pricing is most effective when potential customers are quality-sensitive rather than price-sensitive.

---

Definitions:

Vindicate

To clear from blame or suspicion; to justify, prove, or reinforce the correctness of someone's actions or a particular stance.

Party and Party Basis

A legal term referring to the assessment of legal costs that are to be paid by one party to another in a lawsuit.

Contribution Margin

The amount by which sales revenue exceeds variable costs, contributing to covering fixed costs and generating profit.

Marginal Trend

A minor change or adjustment in a pattern or sequence over time, often indicating a slight shift in behavior or performance.