Penetration pricing means charging a relatively low price for a product as a way to reach the mass market. The low price is designed to capture a large share of a substantial market. Thus, which of the following BEST describes penetration pricing in this case?
a. It tends to lower production costs.
b. It recoups product development costs quickly.
c. It tempts competitors to enter the market.
d. It provides a large profit per unit sold.
Ans: a. It tends to lower production costs.
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When meeting with your foodservice planning committee, what should your primary objective be?
a. labor cost b. equipment layout c. none of these d. flow of work is completed in an organized and smooth manner
The fact that each stage in a supply chain forecasts demand based on the stream of orders received from the downstream stage results in
A) forecasts based on actual consumer demand patterns. B) a reduction in demand as we move up the supply chain from the retailer to the manufacturer. C) a magnification of fluctuations in demand as we move up the supply chain from the retailer to the manufacturer. D) an increase in forecast accuracy.