Penetration Pricing Policy Is MOST LIKELY to Be Effective When

question 75

Multiple Choice

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

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Clinton Administration

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