All of the following are situations in which a penetration pricing strategy would be appropriate EXCEPT:
A. The service is a major improvement over past services
B. Sales volume of the service is very sensitive to price
C. A service faces threats of strong potential competition very soon after introduction
D. There is no class of buyers willing to pay a higher price to obtain the service
E. Economies in unit costs can be achieved by operating at large volumes
Answer: A
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