A Pricing Strategy of Setting the Initial Price Low for the Introduction

question 43

Multiple Choice

A pricing strategy of setting the initial price low for the introduction of a new product or service, with the objective of building sales, market share, and profits quickly is called:

• A)market development pricing.
• B)market extension pricing.
• C)market establishment pricing.
• D)market testing pricing.
• E)market penetration pricing.

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Definitions:

Absolute Threshold

The lowest level of a stimulus that can be perceived half the time by an individual.

Hearing Test

A procedure used to evaluate a person's ability to hear various sounds, frequencies, and volumes, typically conducted by an audiologist.

Activation of Receptors

The process by which receptors on the cell surface or inside the cell are engaged by specific stimuli, leading to a cellular response.

Sensation

The process by which sensory receptors and the nervous system receive and represent stimulus energies from the environment.