Penetration Pricing Policy Is MOST LIKELY to Be Effective When

question 30

Multiple Choice

penetration pricing policy is MOST LIKELY to be effective when: (1) __________; (2) unit production and marketing costs fall dramatically as production volume increases; and (3) many segments of the market are price sensitive.

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

---

Definitions:

Freud's Research

The pioneering work in psychoanalysis by Sigmund Freud, focusing on unconscious desires, childhood experiences, and personality development.

Early Relationships

The initial social connections and attachments an individual forms, particularly in early childhood, which can significantly impact their social and emotional development.

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.

Psychosocial Theory

A framework that explains development throughout the lifespan as a series of stages, each defined by a specific crisis or challenge.