Company a Uses a Pricing Approach Where the Initial Price

question 18

Multiple Choice

Company A uses a pricing approach where the initial price for a product is set high and then lowered,and Company B uses an approach where initial prices are set low in an effort to gain market share.What terms best describe these practices?

• A)Choice A
• B)Choice B
• C)Choice C
• D)Choice D
• E)Choice E

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Definitions:

Break Even

The point at which total revenues equal total costs, resulting in no net loss or gain for a business.

Maintenance Service

Services performed to keep equipment or facilities in optimal working condition, including repairs, cleaning, and regular check-ups.

Promotion

Marketing activities aimed at increasing awareness of a product or brand, persuading people to choose it over competitors' offerings, and encouraging purchase.

Noncumulative Quantity Discount

A pricing strategy where a discount is offered on a single purchase based on the quantity ordered, without considering past purchases.