A Penetration Pricing Policy Is MOST LIKELY to Be Effective

question 195

Multiple Choice

A penetration pricing policy is MOST LIKELY to be effective when: (1) many segments of the market are price sensitive; (2) a low initial price discourages competitors from entering the market;and (3) _________.

• A)unit production and marketing costs fall dramatically as production volumes increase
• B)enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable
• C)lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost
• D)the high initial price will not attract competitors
• E)customers interpret the high price as signifying high quality

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Definitions:

Dissociative Disorder

A class of psychological disorders characterized by a disconnection between thoughts, identity, consciousness, and memory, often resulting from trauma or stress.

Dissociative Identity Disorder

A severe form of dissociation, a mental process which produces a lack of connection in a person’s thoughts, memory, and sense of identity.

Distinct Personalities

The concept that an individual may exhibit different sets of traits, behaviors, and identities in various contexts, sometimes seen in dissociative identity disorder.

Dissociative Fugue

A rare psychiatric disorder characterized by reversible amnesia for personal identity, including the memories, personality, and other identifying characteristics of individuality.