Question 1
In ________, the seller doesn't set a firm price. Instead, buyers competitively propose the prices that they are willing to pay.
◦ cost-based pricing
◦ value-based pricing
◦ optimal pricing
◦ auction pricing
◦ freemium pricing
Question 2
Penetration pricing doesn't work if ________.
◦ the company can't sustain the low price levels profitably
◦ there is some level of competition in the market
◦ a company is entering a market that is new
◦ the customers in a market are highly price sensitive
◦ the product is characterized by high extent of price elasticity