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:

Control Process

The control process is an essential part of management that involves monitoring performance, comparing it with goals, and taking corrective action as needed.

Performance Objectives

Specific goals that individuals or teams strive to achieve, often set to measure and improve effectiveness and efficiency.

Corrective Action

Measures taken to rectify a problem, defect, or deficiency in a process or a product to ensure that it meets its specifications and requirements.

Relative Approach

A method of evaluation or judgment that is based on comparisons with other entities, situations, or standards, rather than absolute measures.