Company a Uses a Pricing Approach Where the Initial Price

question 49

Multiple Choice

Company A uses a pricing approach where the initial price for a product is set high and then lowered, and Company B uses an approach where initial prices are set low in an effort to gain market share. What terms best describe these practices? $\begin{array} { | l | l | l | } \hline & \text { Company A } & \text { Company B } \\\hline 1 & \text { Predatory } & \text { Skimming } \\\hline 2 & \text { Penetration } & \text { Predatory } \\\hline 3 & \text { Skimming } & \text { Penetration } \\\hline 4 & \text { Skimming } & \text { Predatory } \\\hline 5 & \text { Predatory } & \text { Penetration } \\\hline\end{array}$

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Distress

A state of emotional, mental, or physical strain or tension resulting from adverse or demanding circumstances.

Severe Stage

A critical or extreme phase in the development or progression of a situation, condition, or disease.

Workplace Violence

Any act or threat of physical violence, harassment, intimidation, or other threatening disruptive behavior that occurs at the work site.

Cash Register

A machine used in businesses to calculate and record sales transactions, and to store money.