In the market introduction stage of the product life cycle, if a firm has economies of scale and expects competitors to enter the market soon, it would be wise to adopt a skimming price policy.
Answer the following statement true (T) or false (F)
False
A skimming price policy tries to sell the top (skim the cream) of a market-the top of the demand curve-at a high price before aiming at more price-sensitive customers. In contrast, a penetration pricing policy tries to sell the whole market at one low price.
You might also like to view...
Cash dividends paid on capital stock would be reported in the statement of cash flows in
a. the cash flows from financing activities section b. the cash flows from investing activities section c. a separate schedule d. the cash flows from operating activities section
Long-term oriented cultures are associated with which characteristics?
*a. persistence b. personal steadiness c. risk seeking behavior d. competitiveness
If a paper manufacturer merged with a printing company, it would be a:
A) Vertical merger. B) Horizontal merger. C) Product extension merger. D) Conglomerate merger. E) Market extension merger.
When team members don't feel comfortable approaching their leader, progress is accelerated. _________________________
Answer the following statement true (T) or false (F)