A Penetration Pricing Policy Is Most Likely to Be Effective

question 58

Multiple Choice

A penetration pricing policy is most likely to be effective when

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

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Definitions:

Sweatshop

A workplace, often a factory, where workers are employed under poor, unsafe conditions and for very low wages.

Poor Conditions

Refer to unfavorable or substandard environments, often relating to living or working spaces that impact health and well-being negatively.

Overworked

A state in which an individual or workforce is subject to excessive workload, leading to stress or burnout.

Transnational Corporations

Entities that operate in multiple countries, extending their operations and market reach beyond national borders.