In Markets Where Customers Are Sensitive to Price and Where

question 78

Multiple Choice

In markets where customers are sensitive to price and where internal efficiencies lead to cost advantages allowing for acceptable margins even with aggressive pricing, a ________ strategy can create a powerful barrier to market entry for other firms.

• A) penetration pricing
• B) target ROI
• C) price skimming
• D) competitor-based pricing
• E) value pricing

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Definitions:

Fixed-Position Layout

A production strategy where the product remains stationary while equipment, machinery, and workers move around it.

Production Facility

A place equipped with the necessary systems, equipment, and workforce to produce goods or manage product assembly.

Space Shuttle

A reusable spacecraft developed by NASA for traveling to space and returning to Earth, operational from 1981 to 2011.

Customer Oriented

A business approach that prioritizes the needs and satisfaction of customers in the development and selling of products or services.