Penetration Pricing Means Charging a Relatively Low Price for a Product

question 68

Multiple Choice

Penetration pricing means charging a relatively low price for a product as a way to reach the mass market.The low price is designed to capture a large share of a substantial market.Thus,penetration pricing does which of the following?

• A)tends to be more effective in a less price-sensitive market
• B)tempts competitors to enter the market
• C)recoups product development costs quickly
• D)tends to lower production costs

---

Definitions:

Publisher Score

A metric often used in academic and educational contexts to evaluate the quality or impact of publications produced by an individual or institution.

Sten Scores

Standardized test scores used in psychology, often in a range from 1 to 10, to represent an individual's performance relative to a norm group.

Relationship Understanding

The comprehension and interpretation of the dynamics, challenges, and subtleties in personal interactions.

Correlation

A statistical measure that describes the extent to which two variables change together, indicating the strength and direction of their relationship.