Market-Skimming Is a More Popular Strategy for Pricing New Products

question 106

True/False

Market-skimming is a more popular strategy for pricing new products, while market-penetration is a more popular strategy for pricing products that are more advanced in the product life cycle.

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Definitions:

Composite Unit

A measurement representing a combination of different but related items, often used in production or inventory management to simplify tracking and analysis.

Break-Even Point

The level of production or sales at which total revenues equal total expenses, resulting in neither a profit nor a loss.

Pretax Income

The amount of income earned by a business before tax is deducted, also known as earnings before tax (EBT).

Unit Sales Price

The price at which a single unit of a product is sold.