When a Beverage Maker Came Out with a New Drink

question 9

Multiple Choice

When a beverage maker came out with a new drink and priced it at half price for a month to attract buyers, the company was using a(n) ________ strategy.

• A) penetration pricing
• B) skimming price
• C) everyday low price
• D) trial pricing
• E) promo pricing

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Definitions:

Cancellation Option

A contract clause that allows a party to terminate the agreement under certain conditions before its natural end.

Lease Payment

Periodic payments made by a lessee to a lessor for the use of an asset.

Net Advantage to Leasing

A financial concept that compares leasing to purchasing, calculating the costs saved or incurred over the lease term.

Equipment Cost

The total expenditure incurred to purchase, install, and make operational a piece of equipment.