A Penetration Pricing Policy Is Most Likely to Be Effective

question 280

Multiple Choice

A penetration pricing policy is most likely to be effective when (1) many segments of the market are price-sensitive; (2) a low initial price discourages competitors from entering the market; and (3) _________.

• A)unit production and marketing costs fall dramatically as production volumes increase
• B)enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable
• C)lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost
• D)the high initial price will not attract competitors
• E)customers interpret the high price as signifying high quality

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Definitions:

Substance P

A peptide involved in transmitting pain messages to the brain and is involved in inflammatory processes.

Interneurons

Neurons that transmit signals between sensory and motor neurons, playing a critical role in the central nervous system by integrating sensory input and motor output.

Interoceptors

Sensory receptors located inside the body that provide information about the internal environment, such as pH levels, temperature, and other internal states.

Blood PH

A measure of the acidity or alkalinity of blood, normally maintained within a narrow range around a neutral pH of 7.4.