The Main Reason That Penetration Pricing Strategies Work for Jet

question 10

Multiple Choice

The main reason that penetration pricing strategies work for Jet Blue, Southwest, and Ryan Air is:

• A) Their customers are not price sensitive
• B) They all match each other's prices
• C) They have a lower cost structure
• D) They have competitive protection against each other

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Definitions:

Convenience Stores

Small, self-service stores that are open long hours and carry a limited number of frequently purchased items.

Self-Service

A system that allows consumers to perform services for themselves without direct assistance from staff, often facilitated by technology.

Extreme Value Retailers

Retailers that offer products at significantly lower prices than their competitors, typically by reducing costs through simple store designs and limited service.

Dollar Discount Stores

Retail outlets where a majority of the items are sold at discounted prices, typically one dollar or around that price point.