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.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, and it has its own rights, privileges, and liabilities independent of the owners.

Modular Homebuilder

A company that specializes in constructing homes that are primarily built off-site, in sections, and then assembled on-site.

Manufacturing Business

A company engaged in the processing of raw materials into finished products through the use of labor, machinery, and equipment.

Hospital

A medical facility that offers patient care through specialized healthcare professionals and advanced medical machinery.