A Penetration Pricing Policy Is MOST LIKELY to Be Effective

question 349

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)the high initial price will not attract competitors.
• C)a low initial price discourages competitors from entering the market.
• 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:

Capacity building

The process of developing and strengthening the skills, abilities, processes, and resources that organizations and communities need to survive, adapt, and thrive.

Organizational skills

The ability to manage time, tasks, and resources effectively, often crucial for personal and professional productivity.

Millennium goals

A set of eight international development goals established in 2000, aiming to improve global conditions by 2015.

Canadian International Development Agency (CIDA)

A former federal agency responsible for administering foreign aid programs in developing countries on behalf of the Government of Canada.