The Pricing Strategy Where a Company Initially Sets the Price

question 44

Multiple Choice

The pricing strategy where a company initially sets the price of its product low and then raises it later on in the product's life cycle is called:

• A)price skimming
• B)target pricing
• C)life-cycle pricing
• D)penetration pricing

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Definitions:

Financial Intermediary

An institution that acts as a middleman between savers and borrowers, facilitating the flow of funds in the financial markets.

Fraudulent Means

Fraudulent means involve deceit, trickery, or dishonest conduct with the intention of gaining an unfair advantage or causing harm to another party.

Securities

Financial instruments that represent ownership positions in publicly-traded corporations, creditor relationships with governmental bodies or corporations, or rights to ownership.

Public Market Price

The current trading value of goods, services, or securities in a publicly accessible market.