Which of the Following Statements Is True of Penetration Pricing

question 25

Multiple Choice

Which of the following statements is true of penetration pricing?

• A) Penetration pricing makes sense only in categories that have a significant group of consumers who would be willing to pay a premium.
• B) Penetration pricing involves increasing product prices to target upscale consumers.
• C) A company using penetration pricing makes profit from the volume of sales.
• D) A company using penetration pricing gains a very high profit on each individual sale.

---

Definitions:

Individuality

The quality or character of a particular person that distinguishes them from others of the same kind, encouraging individual traits and freedoms.

Group Crowd

A large number of individuals gathered together, often sharing a common purpose or emotion, but not necessarily structured as a group.

Deindividuation

A concept in social psychology that refers to the loss of self-awareness in groups, which can lead to disinhibited and impulsive actions.

Social Loafing

The phenomenon where individuals exert less effort when working in a group compared to when working alone.