manufacturer of a new kind of fat-free ice cream that has the consistency and taste of regular ice cream is thinking of using a penetration pricing strategy for its new product.Which of the following conditions would argue AGAINST using a penetration pricing strategy for the tasty fat-free ice cream?
A) The ice cream market is highly conservative.
B) Economies of scale in production would be substantial.
C) Retailers are not willing to carry new brands of ice cream in the already overcrowded category.
D) Once the initial price is set, it is nearly impossible to lower the price without alienating early buyers.
E) The ice cream market exhibits inelastic demand over a fairly broad range of prices.
Correct Answer:
Verified
Q24: Which of the following statements about penetration
Q27: Prestige pricing is considered to be a
Q32: Setting a high price so that quality-
Q61: response to Duracell's introduction of the Duracell
Q62: Talbot's sells women's clothes.A T-shirt with the
Q63: manufacturer using _ is setting a high
Q64: response to Duracell's introduction of the Duracell
Q67: Figure 14-3B above illustrates which type of
Q68: movement from point A to point B
Q70: some cases,penetration pricing may follow skimming pricing.The
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents