Penetration pricing doesn't work if ________
A) the company can't sustain the low price levels profitably
B) there is some level of competition in the market
C) a company is entering a market that is totally new
D) the customers in a market are highly price sensitive
E) the product is characterized by high extent of price elasticity
Answer: A
Explanation: Penetration pricing doesn't work if the company can't sustain the low price levels profitably, if prices for a particular product are inelastic, or if customers weigh other factors more heavily than price.
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