Introductory Price Dealing

question 239

Multiple Choice

Introductory price dealing:

• A) would not be used if other competitors already had competing products on the market at a price consumers found acceptable.
• B) is often viewed by competitors as a "stay out" price.
• C) usually sets off price wars.
• D) is different from penetration pricing.
• E) can apply only to final consumers, not channel members.

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Definitions:

Days' Sales

Days' Sales, often referred to as Days Sales Outstanding (DSO), measures the average number of days it takes a company to collect payment after a sale has been made.

Receivables Turnover

A financial metric that measures how efficiently a company uses its assets by converting accounts receivable into cash over a period.

Debt-Equity Ratio

A financial ratio that represents the comparative deployment of shareholders' equity and debt in asset financing.

Total Asset Turnover

A financial metric indicating how efficiently a company uses its assets to generate sales revenue.