The Strategy of Setting a Low Price for a New

question 121

Multiple Choice

The strategy of setting a low price for a new product to gain a large market share for the product quickly is called

• A) penetration pricing.
• B) price skimming.
• C) sample pricing.
• D) introductory pricing.
• E) odd pricing.

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Definitions:

Direct Expenses

Costs that can be directly traced to a product, service, or activity without any need for allocation.

Profit Center

A profit center is a division or branch within a company that is responsible for generating its own revenue and profit, allowing for performance measurement independently.

Uncontrollable Costs

Uncontrollable costs are expenses that cannot be directly managed or influenced by actions of the business or its managers, often due to external factors.

Investment Center

A division or unit within an organization that is responsible for its own revenue, expenses, and investments, and is evaluated on its profitability.