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:

Amphetamine

A potent central nervous system stimulant used medicinally in the treatment of attention deficit hyperactivity disorder (ADHD), narcolepsy, and obesity, but also misused illegally for its energetic and euphoric effects.

Central Nervous System

The central nervous system consists of the brain and spinal cord, functioning as the primary processing center for the body's nervous system.

Stimulant

A substance that raises levels of physiological or nervous activity in the body, typically used to increase alertness, energy, or physical performance.

Tranquilizer

A drug used to reduce tension or anxiety, often by depressing nerve function.