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

Question

Quizplus · Accepted Answer

A)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.
B)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.
C)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.
D)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.
E)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.

Penetration Pricing Doesn't Work If ________