A Penetration Strategy Tends to Be Effective in a Price-Sensitive

question 129

Multiple Choice

A penetration strategy tends to be effective in a price-sensitive market.Thus,one of the purposes of penetration pricing is to:

• A) recoup product development costs quickly
• B) discourage competitors from entering the market
• C) produce a large margin of profit per unit
• D) develop exclusive distribution
• E) attract the price-insensitive buyer who demands the latest in technology

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Definitions:

Dividend Payments

Financial rewards paid out to shareholders, typically from a portion of a company's earnings.

Investment Sale

The process of selling securities or assets for the purpose of realizing gains from the investment.

Gain or Loss

The difference between the selling price of an asset and its purchase price, representing a financial profit or loss.

Maintains Control

A situation wherein an entity or individual continues to hold power or dominion over decision-making processes, assets, or other entities.