Which of the Following Statements Regarding Pricing Constraints Is Most

question 252

Multiple Choice

Which of the following statements regarding pricing constraints is most accurate?

• A) When a product is in the introductory stage of the product life cycle, the initial price must be low since consumers don't know what the product can do.
• B) Patents and limited competition earlier in the life cycle mean that higher prices can usually be charged for new products.
• C) The greater the number of products in a company's product line, the less the product features of similar products can affect price.
• D) The newest addition to a company's product line should always have the highest price in order to maintain the value of existing brands.
• E) To avoid cannibalization, the newest product addition to a company's product line should never have a price lower than the other offerings in the line.

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Definitions:

Semantic Memory

The memory of knowledge concerning the use of language and the rules for the solution of problems or acquisition of concepts.

Hierarchically

In an organized manner where objects, values, or classes are ranked above one another, often used to describe structured relationships within systems.

Concept Organization

The arrangement and structuring of ideas and categories in the mind to facilitate understanding and retrieval of information.

Elaborative Rehearsal

A memory technique that involves thinking about the meaning of the term to be remembered, rather than merely repeating the word to yourself.