A New Startup Wants to Gain as Many Users as Possible

question 85

Multiple Choice

A new startup wants to gain as many users as possible to eventually pay for their service, once they understand the product's value to them. Their first pricing strategy should be one of ________ pricing and then switch to _________to further amass market share.

• A)penetration/skimming
• B)freemium/penetration
• C)penetration/freemium
• D)freemium/skimming

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Definitions:

Merchandise Sold

The total value of goods that have been sold by a company during a specific period, often reported on the income statement.

Sales Tax Department

The government department or agency responsible for collecting, administering, and enforcing sales tax regulations and payments.

Sales Tax Percentage

The rate at which sales tax is applied to the purchase price of goods and services, expressed as a percentage.

Merchandise Sold

Goods that have been sold and transferred from the seller to the buyer; this term is often used in the retail and wholesale sectors.