Stevens Outdoor Furniture Has Just Introduced a New Line of Products

question 112

True/False

Stevens Outdoor Furniture has just introduced a new line of products in the southeastern United States. Owner James Bilby discovered the new line, which includes outdoor furniture and other lawn items, on a recent vacation to California. The market is extremely promising because none of his main competitors stocks this type of furniture. He’s concerned, however, about pricing because shipping costs will drive his prices higher than those charged by stores closer to the manufacturer’s West Coast factory. Initial promotion and advertising costs, as well as warehousing expenses, are also on Bilby’s mind. He’s called a teleconference with his ten store managers to develop a pricing strategy that must take effect immediately.
-It appears that,at this point,penetration pricing is Bilby's best strategy.

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Definitions:

Attribute

A quality or feature regarded as a characteristic or inherent part of someone or something.