Pine River Equipment Has Developed a Distinctly New Product That

question 75

Multiple Choice

Pine River Equipment has developed a distinctly new product that offers considerable promise. By exploiting the experience effect, management believes that there are opportunities for a substantial reduction in production costs as volume expands. While the market is quite large, there is a strong threat of imminent competition. The firm should likely use:

• A)product differentiation.
• B)a skimming approach to pricing.
• C)a penetration approach to pricing.
• D)a bid price policy.
• E)a life cycle costing pricing policy.

---

Definitions:

Treats Others

Refers to the manner in which an individual interacts with and regards other people within interpersonal relationships or social contexts.

Ends in Themselves

Refers to Kantian ethics principle where individuals are considered as having intrinsic value, not merely as means to others' ends.

Common Goal

A shared objective or aim pursued by individuals within a group or organization.

Ethical Leadership Principle

A guideline for leadership behavior that emphasizes honesty, integrity, fairness, and respect in decision-making and interactions.