Penetration Pricing Would Be Most Appealing to Which of the Following

question 36

Multiple Choice

Penetration pricing would be most appealing to which of the following firms?

• A)a firm that is willing to sell some goods below cost in order to generate more store traffic
• B)a firm that wants to remove price as a point of comparison so that consumers will make their choices based on other considerations
• C)a firm that is introducing a new product and wants to quickly capture the market and discourage competition
• D)a firm that has a product for which it wants to establish an image of quality and exclusivity

---

Definitions:

Collection Delay

The time lag between issuing an invoice and receiving payment, impacting cash flow and liquidity.

Average Amount

A calculated central value of a set of numbers which is typically determined by dividing the sum of the values in the set by their number.

Average Daily Receipts

The average amount of cash flow received by a company on a daily basis.

Clearing Times

The period it takes for funds to be transferred from one account to another and become available for use.