When the Management Team Noted the Increased Interest in Bikes

question 20

Multiple Choice

When the management team noted the increased interest in bikes as a mode of commuting,bicycle manufacturer Sensta introduced utility bikes aimed at the urban commuter.In which of the following cases is the company following a multiple-segment pricing strategy?

• A)Sensta entered the market with a bike priced at $2,500,and later,as more competitors entered the market,reduced the price to $1,000.
• B)As the market for bikes in a particular city became saturated,Sensta raised the prices of its bikes hoping to gain maximum profit before exiting the market.
• C)With several competitors with similar product features in the utility bike market,Sensta concentrated on the sturdiness of its bikes,and raised the price of the basic model from $500 to $1,000.
• D)Sensta manufactures a basic model priced at $500,a bike with more features,priced at $1,500 and a deluxe model priced at $3,000.
• E)When Sensta entered the market,there were already competitors in the $1,000-$2,000 price range.Sensta introduced three bike models in the $500-$700 price range in order to capture market share,and later raised the prices of its products.