Match each term with the correct statement below.

a. pull strategy
b. sweepstakes
c. price skimming
d. selective advertising
e. push strategy
f. penetration pricing

1. A majority of the advertising
2. Setting a price high during the introduction stage of the product life cycle
3. A firm promotes its product directly to consumers
4. Initially pricing a product below that of the competition in order to gain market share
5. A firm strongly promotes its product to wholesalers and retailers


1. D) selective advertising
2. C) price skimming
3. A) pull strategy
4. F) penetration pricing
5. E) push strategy

Business

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Answer the following statement true (T) or false (F)

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The Freed Corporation produces three products, X, Y, Z, from a single raw material input. Product Y can be sold at the split-off point for total annual revenues of $50,000, or it can be processed further at a total annual cost of $16,000 and then sold for $68,000. Which of the following statements is true concerning Product Y?

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Business