When a Company Sponsors Community Events, Local Groups, And/or Sporting

question 87

Multiple Choice

When a company sponsors community events, local groups, and/or sporting teams, they are engaging in

• A) community relations.
• B) public affairs.
• C) product seeding.
• D) publicity.
• E) buzz marketing.

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Definitions:

Prestige Pricing

A pricing strategy where the price is set higher than average to create a perception of exclusivity and high quality, appealing to status-conscious consumers.

Skimming Strategy

A pricing strategy involving setting high prices initially and then lowering them over time.

Market-Entry Barriers

Obstacles that companies face when trying to enter a new market, which can include regulatory policies, capital requirements, and established competitor advantage.

Price Sensitivity

The degree to which the demand for a product changes in response to a change in its price.