To Discourage Competitive Entry,a Company Can Price Its New Product

question 164

Multiple Choice

To discourage competitive entry,a company can price its new product low,using penetration pricing.This pricing strategy also helps to:

• A)reduce costs.
• B)increase profits.
• C)build customer loyalty.
• D)build unit volume.

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Definitions:

Higher Wages

Compensation levels that exceed the minimum or average pay for a given role or industry, often used to attract or retain employees.

Sectoral Level

Pertains to the division or categorization of the economy or labor market into sectors based on economic activities.

National Level

A scale of operation or consideration encompassing an entire country.

International Level

Pertaining to or involving two or more nations or the global scope of activities.