A Penetration Pricing Policy Is MOST LIKELY to Be Effective

question 106

Multiple Choice

A penetration pricing policy is MOST LIKELY to be effective when

• A)lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost.
• B)many segments of the market are price sensitive.
• C)the high initial price will not attract competitors.
• D)customers interpret the high price as signifying high quality.
• E)enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable.

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Definitions:

Retiring Employees

Individuals who leave their jobs and cease to work typically due to age or health reasons, entering a period of retirement.

Occupation

A person's regular employment or profession, which is often used to identify one's role in society or the economy.

Work Arrangements

The terms and conditions under which work is performed, including aspects like scheduling, location (remote or on-site), and hours.

Outsources

The practice of hiring third-party companies or individuals to perform tasks, handle operations or provide services that are either difficult to manage or are outside the core business expertise.