Which of the Following Is Correct with Regard to the Pricing

question 283

Multiple Choice

Which of the following is correct with regard to the pricing of existing and new products?

• A) Price skimming is generally most effective for consumer goods, but penetration pricing is generally most effective for industrial goods.
• B) The penetration pricing option is generally most effective for both consumer and industrial goods.
• C) In the car rental business, setting prices below the market generally works best.
• D) Penetration pricing is generally superior to a skimming strategy for new products.
• E) None of these is correct.

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Definitions:

Fiduciary Duty

An obligation to act in the best interest of another party. For instance, a fiduciary duty exists between a trustee and the beneficiaries of the trust.

Competing Business

An enterprise engaged in the same industry or market as another business, striving to achieve superiority in sales, product, and presence.

Written Agreement

A formally documented arrangement between parties clearly outlining each party's rights, duties, and responsibilities.

Oil Change Store

An oil change store is a service establishment that specializes in changing the oil and oil filter in vehicles as part of routine maintenance.