Which of the Following Statements Regarding Pricing Constraints Is Most

question 252

Multiple Choice

Which of the following statements regarding pricing constraints is most accurate?

• A)When a product is in the introductory stage of the product life cycle, there is very little latitude in setting the initial price since consumers still don't know what the product can really do.
• B)A company has more latitude in setting an initial price if the product is in the introductory stage of its life cycle.
• C)The greater the number of products in a company's product line, the less the product features of similar products can affect price.
• D)The newest addition to a company's product line should always have the highest price in order to maintain the value of existing brands.
• E)To avoid cannibalization, the newest product addition to a company's product line should never have a price lower than the other offerings in the line

---

Definitions:

Recreational Athletics

Sports or physical activities engaged in for enjoyment, health, or social interaction, rather than for professional or competitive purposes.

Realistic Thinking

Focusing on facts and evidences to form beliefs or understand the world, acknowledging the actual state of affairs.

Optimistic Thinking

A mindset characterized by expecting the best possible outcome in any situation and focusing on the most hopeful aspects.

Panic Button Effect

A situation or response mechanism designed to offer an immediate means of help or action in emergency situations.