Author Question: Penetration pricing is used by companies that a. are trying to gain a high sales volume b. are ... (Read 127 times)

hubes95 · **on:** Jun 29, 2018

Penetration pricing is used by companies that
a. are trying to gain a high sales volume
b. are attempting to generate high profit
c. are attempting to recover the cost of product development quickly
d. all of the above

Question 2

Jonathan always wore horned-rimmed glasses when he was in school and was always ridiculed because of them. However, in college, he was praised for his smart and intelligent looking glasses even though he wore the same kind of glasses. Horned- and wire-rimmed glasses were considered old-fashioned until they became associated with intellectualism in the 1980s. From the above scenario, it can be understood that when Jonathan entered college his glasses were perceived as a symbolic innovation because:
A) the design of his glasses was observed as new.
B) the features associated with his glasses were new.
C) the brand name associated with his glasses was new.
D) the meaning associated with his glasses was new.
E) the technology associated with his glasses was new.

mcarey591 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A
Multinationals that have sales-based objectives, attempting to gain a high sales volume, are likely to use penetration pricing. Firms using this strategy price the product at first below the price of competitors to quickly penetrate the market at their competitors' expense. This material can be found in the Penetration Pricing and Skimming Strategies section (16-3d).

Answer to Question 2

D