Penetration Pricing Refers to

question 72

Multiple Choice

Penetration pricing refers to

• A) charging different prices to different buyers for goods of like grade and quality.
• B) setting the highest initial price that customers really desiring the product are willing to pay.
• C) setting a low initial price on a new product to appeal immediately to the mass market.
• D) setting a market price for a product or product class based on a subjective feel for the competitors' prices or market price.
• E) setting prices a few dollars or cents under an even number.

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Definitions:

Planning Fallacy

A cognitive bias that causes people to underestimate the time, costs, and risks of future actions and overestimate the benefits.

Behind Schedule

Referring to a situation where a project or task takes longer to complete than originally planned or expected.

Major Construction Projects

Large-scale construction undertakings that typically involve significant investment and complexity, often related to infrastructure.

Behavioral Economics

A field of economics that studies how psychological, social, cognitive, and emotional factors influence economic decisions of individuals and institutions.