Marketers Use Penetration Pricing for New Products to ________

question 10

Multiple Choice

Marketers use penetration pricing for new products to ________.

• A)discourage competition from entering the market
• B)focus on the rapid achievement of profit objectives
• C)ensure the company has the ability to lower prices once demand decreases
• D)appeal to different consumer segments with different levels of price sensitivity
• E)create markets for highly technical products

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Definitions:

Current Liability

Financial obligations a company is required to pay within a year.

Product Warranty Expense

Costs associated with repairing or replacing defective products under warranty.

Replacement Warranty

A guarantee provided to a purchaser of a product that a defective item will be replaced within a specified period of time.

Unfunded Pension Liability

A pension obligation for which sufficient assets have not been set aside, representing a potential future liability for the employer.