Which Pricing Strategy Is Proper When Customers Are Highly Sensitive

question 5

Multiple Choice

Which pricing strategy is proper when customers are highly sensitive to price,low prices discourage actual and potential competition,and total retail costs do not increase as much as sales volume increases?

• A)early recovery of cash
• B)market skimming
• C)selling against the brand
• D)market penetration

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Definitions:

Commodity Money

Money that has intrinsic value and can be used for purposes other than as a medium of exchange, such as gold or silver.

Legal Tender

The government-mandated currency that must be accepted as payment for debts.

Ruble

The official currency of Russia, symbolizing the country's economic activity.

Open-Market Operations

The buying and selling of government securities by a central bank to control the money supply and interest rates.