A Penetration Pricing Policy Is Most Likely to Be Effective

question 244

Multiple Choice

A penetration pricing policy is most likely to be effective when (1) many segments of the market are price-sensitive; (2) __________; and (3) unit production and marketing costs fall dramatically as production volumes increase.

• A)lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost
• B)the high initial price will not attract competitors
• C)customers interpret the high price as signifying high quality
• D)a low initial price discourages competitors from entering the market
• E)enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable

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Definitions:

Atrial Systole

The phase of the heart's cycle during which the atria contract, pushing blood into the ventricles.

P Wave

The first wave detected in an electrocardiogram; represents the depolarization of the atria before they contract.

AV Valve

Atrioventricular valves, which are located between the atria and ventricles of the heart, preventing backflow of blood from the ventricles into the atria.

Atrial Systole

The contraction of the atria chambers of the heart, which pushes blood into the ventricles.