What Is the Short-Sighted Thinking Behind the Penetration-Pricing Strategy

question 58

Multiple Choice

What is the short-sighted thinking behind the penetration-pricing strategy?

• A)Pricing below competitors will lead to higher market share
• B)Gross margins should be very high for a new product.
• C)Loyal customers demand the lowest price.
• D)The simplest method of selective prices saves time.
• E)Prices should match the value of products.

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Definitions:

Inhibition

The psychological process that restrains or controls an individual's thoughts, emotions, or actions.

Attention

The cognitive process of selectively concentrating on one aspect of the environment while ignoring other things.

Situational Demands

External pressures or circumstances that necessitate a response or adjustment from an individual or group.

Attention

The mental act of focusing attention on a particular element of the surroundings, while disregarding other aspects.