One Reason Marketers of New,innovative Products Often Start Out with a Price

question 96

Multiple Choice

One reason marketers of new,innovative products often start out with a price skimming strategy rather than a market penetration strategy is that

• A) few consumers understand a penetration strategy.
• B) a price skimming strategy lowers the value for consumers.
• C) a price skimming strategy targets all product adopters equally.
• D) it is easier to lower prices than to raise them.
• E) price skimming is legal while price penetration is not.

Comprehend the factors that influence the communication strategies of organizations in health crises.

Analyze the purpose and methods of government relations and lobbying by organizations.

Recognize public outrage factors and PR challenges in food industry controversies.

Identify and appraise strategic public affairs programs aimed at addressing public health issues.

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Definitions:

Prospective Adjustment

An accounting adjustment applied to transactions or valuation changes that occur in the current or future accounting periods.

Adjusting Events

Events after the balance sheet date that provide further evidence of conditions that existed at the end of the reporting period, requiring adjustments to financial statements.

Non-Adjusting Events

Events after the reporting period that do not provide new information about conditions existing at the end of the reporting period.