Which of the Following Is Correct with Regard to the Pricing

question 88

Short Answer

Which of the following is correct with regard to the pricing of new products?
There are two basic strategies available: follow-the-leader and price leadership.
Price skimming is more effective than penetration pricing.
Penetration pricing is generally more effective than price skimming.
Price skimming involves trying to sell a new product only to customers with the highest income levels.
Penetration pricing is designed to stimulate trial purchase.

---

Definitions:

Aversive Events

Unpleasant or harmful events that an individual seeks to avoid or escape from.

Generalized Inability

Broad and pervasive lack of capacity in learning or accomplishing tasks, often not limited to one specific area.

Aggressive Model

A concept in social psychology that suggests observing aggressive behavior can lead individuals to imitate such behavior.