A Penetration Pricing Policy Is Most Likely to Be Effective

question 310

Multiple Choice

A penetration pricing policy is most likely to be effective when

• A)lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost.
• B)the high initial price will not attract competitors.
• C)a low initial price discourages competitors from entering the market.
• D)customers interpret the high price as signifying high quality.
• E)enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable.

---

Definitions:

Artificial Intelligence

The programming of computer systems to simulate human thinking in solving problems and in making judgments and decisions.

Artificial Neural Networking

A computational model inspired by the structure and functions of biological neural networks, used in machine learning to simulate human brain operations.

Robotics

The branch of technology that deals with the design, construction, operation, and application of robots.

Algorithm

A step-by-step procedure or formula for solving a problem, often used in mathematical and computer applications.