Which of the Following Is a Reason That a Marketer

question 43

Multiple Choice

Which of the following is a reason that a marketer would choose a penetration pricing strategy?

• A)to ensure the company has the ability to increase prices once demand decreases
• B)to focus on the rapid achievement of profit objectives
• C)to appeal to different consumer segments with different levels of price sensitivity
• D)to discourage competition from entering the market
• E)to create markets for highly technical products

Understand the concept of the risk-reward relationship and how it applies to various investments.

Identify and explain the role of beta in assessing the risk of individual stocks and portfolios.

Explain the impact of changes in expected inflation and the market risk premium on required returns.

Apply the principles of portfolio diversification and understand its effect on risk reduction.

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Definitions:

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Maker

In financial terms, the party that issues or creates an instrument, such as a check or promissory note, effectively promising to pay the amount specified.

Credit Sales

refers to sales in which the buyer is permitted to pay at a later date, commonly used in business to business transactions.

Specific Customers

Refers to the particular group or segment of customers targeted by a business for its products or services.