A Razor Manufacturer Introduced Its New Three-Blade Razor at a Very

question 30

Multiple Choice

A razor manufacturer introduced its new three-blade razor at a very low price to encourage more consumers to purchase it and to discourage competition.This is an example of _____ pricing.

• A) penetration
• B) cost-plus
• C) going-rate
• D) markdown

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Definitions:

Percentage Of Sale

A commission structure where payment is based on a percentage of the sales made.

Prestige Pricing

A pricing strategy where prices are set higher than average to present the image of exclusivity and high quality.

Pricing Strategy

An approach or method used by a business to determine the best price for its products or services to maximize profitability and meet customer and market demand.

Breakeven Analysis

A financial calculation to determine the number of units or revenue needed to cover total costs, at which point a business neither makes a profit nor suffers a loss.