many segments of the market are price sensitive.
A)lowering the price has only a minor effect on increasing sales volume and reducing unit costs
B)the high initial prices do not attract competitors
C)a low initial price discourages competitors from entering the market
D)customers interpret high prices as signifying high quality
E)customers are willing to buy immediately at the high initial price

Question

Quizplus · Accepted Answer

A low initial price can discourage competitors from entering the market as they may not be able to compete with the lower price point. This can potentially give the company a larger market share and more pricing power in the future.

Many Segments of the Market Are Price Sensitive