Yurgen Is Opening a Financial Consulting Service for High-Income Retirees

question 79

Multiple Choice

Yurgen is opening a financial consulting service for high-income retirees in his area. This target market is used to paying for quality and associates high quality with high prices. Yurgen should probably NOT use a market penetration pricing strategy because

• A) he might be missing out on customers who would pay more for his products.
• B) there are moderate barriers to competitive entry in the market.
• C) a low price might signal low quality.
• D) he would have to determine zone pricing discounts.
• E) the experience curve effect would drop unit costs too rapidly.

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Definitions:

General Conclusion

A final statement or judgment that summarizes findings or opinions across a wide range of observations or analyses.

Audience Resistance

The reluctance or opposition shown by an audience towards the message being presented to them.

Hard-sell Approach

A sales strategy that uses aggressive tactics and pressure to convince customers to buy a product or service.

Potential Problems

Issues or challenges that may arise in the future or under certain conditions.