When Setting a Price Level Policy,a Good Marketing Manager Knows

question 91

Multiple Choice

When setting a price level policy,a good marketing manager knows that

• A) introductory price dealing usually does not increase sales.
• B) a penetration price makes the most sense when there is a large "elite" market.
• C) a "skimming" price may lead to low profits if demand is very elastic.
• D) it's easy to raise prices if the initial price is too low.
• E) none of these alternatives is correct.

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Definitions:

Express or Implied Authority

Power granted by a principal to an agent, which can be explicitly stated (express) or inferred from actions, circumstances, or job title (implied).

Disclosed Principal

In the realm of agency law, a principal whose identity the third party is aware of when the agent enters into a contract with that third party.

Unauthorized Contract

An agreement made by someone who does not have the legal right or power to do so on behalf of another person or entity.

Agent Lacks Authority

A situation where an agent acts outside of their given powers, potentially making their actions unbinding on the principal.