The Strategy of Setting a Low Price for a New

question 121

Multiple Choice

The strategy of setting a low price for a new product to gain a large market share for the product quickly is called

• A) penetration pricing.
• B) price skimming.
• C) sample pricing.
• D) introductory pricing.
• E) odd pricing.

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Definitions:

Infant Industry

A new or emerging industry that may require protection and support to grow against international competition.

Trade Protection

Economic policies and measures designed to restrict international trade to protect domestic industries from foreign competition.

Foreign Competition

Economic rivalry that businesses face from producers located in other countries.

Net Loss

The amount by which total expenses exceed total revenues for a business or individual, indicating a negative financial performance.